December 30, 2021 auto

Automobile sector sales see rise in 2021


KUWAIT CITY, Dec 29: According to new car sales figures in Kuwait during the period from January 2021 to October 2021, the automobile sector is quickly recuperating from the negative effects of the COVID-19 crisis with the least rate of losses. It has in fact exceeded expectations, as 71,106 new cars were sold in the first ten months of this year. The sector has thus recorded a growth of 34.5 percent compared to 52,828 vehicles sold during the same period in 2020.

Kuwait was hit by sporadic, intermittent rain throughout the country which began Tuesday evening. Pools of water slowed down traffic with people preferring to stay indoors. More rain is expected as unstable weather to continue over the weekend, says the weatherman.

This is an increase of four percent compared to sales for the whole of last year, which amounted to 68,389 new cars, reports Al-Rai daily. According to official statistics obtained by the daily, the majority of the car brands available in the local market recorded a growth in their sales. Informed sources from the sector attributed this growth to many factors, including the decline in travel rate, especially in the first eight months of this year prior to the reopening of Kuwait International Airport and it becoming fully operational at the beginning of August, in addition to postponing loan installments for citizens for a period of six months. This led to the availability of cash in their hands and it refl ected positively on the automobile sector. The companies in the sector benefited from the revival of the import movement faster than last year, especially with the reduction of precautionary measures in terms of production in global factories, and the launch of more than 40 modern models throughout the current year.

This led to the acceleration of the registration of new cars in the local market by the concerned authorities, and its sale to customers who were keen to buy modern vehicles with advanced technologies as soon as they were available in the market. They took advantage of the various offers that agencies have been racing to offer, amid an increase in the pace of the race among many customers to buy completely new models, even if they had to pay additional amounts for that. The figures indicate that the lion’s share of new car sales was in favor of Japanese cars, which accounted for about 47.9 percent of sales. This was followed by American cars with about 16.3 percent, and then Chinese cars with 12 percent, Korean vehicles with 10.8 percent, European models with 10.4 percent, and only 2.4 percent for British car brands available in Kuwait

Dominate
The Asian brands continue to dominate sales, as Japanese, Korean and Chinese cars accounted for about 73.7 percent of the total sales, with about 50,317 vehicles sold, outperforming American models, which came second with 11,593 new cars. The European vehicles came third with 7,444 cars, while the relatively low share of vehicles continued. The British market sold only 1,752 cars, mainly because the majority of vehicles from the UK are classified as luxury cars in the local market, which means that their value is much higher than other types of cars, and their customers are usually of high financial ability in the Kuwaiti society.

The statistics showed that luxury car sales in the local market amounted to 353 vehicles during the period between January 2021 and October 2021, representing 0.49 percent of the total cars sold in the market, compared to 321 cars, or 0.4 percent during the same period in 2020, and 410 cars, equivalent to 0.59 percent of the market sales of the entire past year. This confirms the continued demand for this type of vehicles by customers, many of whom consider luxury vehicles as a safe haven and an investment that maintains its value over time, without being affected by any internal or external factors.

There are about 78 international car brands with an Asian majority, including 11 Japanese companies, 22 Chinese brands, 9 American brands, 7 brands from the United Kingdom, three Korean brands, and 15 European brands. This reveals the great confidence of global car companies in the local market, and the solid partnership that connects it to local agencies. This comes at a time when the local market witnessed many agents being switched between international brands, which confirms the manufacturers’ keenness to stay in Kuwait and search for the best opportunities available through local agents.

arabtimesonline



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