Qatar - AutomotiveQatar - Automotive
The Automotive industry continued to experience a slowdown in 2017, with a decline in sales estimated at 47% on average across all automotive brands.
While Japanese brands as Toyota, Nissan and Hyundai enjoy the largest market share (51% in 2017), American brands follow with an approximate market share of 12%. GMC, Cadillac, Chevrolet and Ford are among the most popular brands. Much of the population adopts motor vehicles for transportation. To that end the demand for spare parts has increased significantly in the past few years for all major players as people look to repair, modify or upgrade their vehicles.
High demand for used spare parts such as brake pads, transmission controls, AC functions, coolant, wipes and belts continue to prevail in 2017 because of the overall economic cycle. Demand for spare parts tends to increase substantially during the summer period in Qatar as many people tend to go on vacation using their vehicles preferring road trips to neighboring countries. As such, people purchase spare parts in sets and carry out the necessary vehicle checks and repairs before they leave for the summer. The reliance and demand for spare parts for motor vehicles is set to remain for the coming few years.
Demand for trucks and utility vehicles decreased in 2017 given the slowdown in construction activity. A majority of the local agencies focused on the “lease-to-own” model, catering to local companies’ limited capital expenditure capabilities. European brands continue to enjoy the highest market share with brands such as Mercedes Benz with the Actros model dominating the market, followed by MAN, IVECO and Renault. Nevertheless, aftermarket parts manufactured in the U.S. for European models are a major opportunity for U.S. suppliers. The demand for spare parts, car care products and accessories has likewise increased as the number of used vehicles has reached around 670,000 units. The number of medium and heavy duty trucks is in the neighborhood of 250,000 units.
Sub-Sector Best Prospects
- Sports Utility Vehicles
- Trucks, Vans and Buses
- All-Terrain Vehicles (ATV), Utility Vehicles (UTVs)
- Specialized trucks and vehicles
- Car care products
- Aftermarket parts, accessories, and spare parts
- Tenders published by the different governmental institutions
- Market penetration through appointment of distributors
Contact the Commercial Section of the U.S. Embassy
Qatar Automotive Trade Development and Promotion