Boston, MA -- (SBWire) -- 01/29/2014 --Last quarter we revised up our forecasts for new vehicle sales in Bahrain in 2013 from a 9% year-on-year (y-o-y) rise expected earlier to a more robust 14.5% y-o-y increase. We have again revised up our forecast, which now stands at 14.8%.
The upgrades reflects our overall optimism for the economy during 2013 and 2014. We expect Bahrain's economy to expand at a moderate pace over 2014 and forecast real GDP growth of 3.4%, down from an estimated 4.3% in 2013.
We believe that planned expansion in government current spending will help stimulate private consumption, which in turn will support new vehicle sales. We expect to see relatively robust growth of 5.0% in private consumption in 2014 after an estimated rate of 6.0% in 2013 (with the latter driven by strong base effects following growth of just 0.7% in 2012).
View Full Report Details and Table of Contents
In terms of vehicle segments, we expect passenger car sales to outperform the commercial vehicle segment with sales growth of 15% y-o-y. Commercial vehicles accounted for fewer than 15% of the total vehicle sales during 2012, but this proportion is likely to increase to nearly 17% by the end of the forecast period to 2017. Investments in the infrastructure and construction segment, such as the announcement in November 2013 that government of Bahrain will soon launch a tender for the expansion project of the Bahrain International Airport, will result in the commercial vehicle sales growth outperforming that in the passenger cars segment.
Bahrain remains an important target for luxury and premium vehicle makers similar to its neighbouring markets. August 2013 witnessed the launch of the limited edition MINI Ray in the market at dealership firm Euro Motors. MINI's sales in the region increased 11% y-o-y, to 773 cars during the first half of 2013.
With the view to tap demand from affluent consumers, UK bank Standard Chartered, in September 2013, entered into a partnership with Monther Al Mutlaq Trading Establishment, the official agent for US premium motorcycle manufacturer Harley-Davidson in Bahrain and Saudi Arabia. Under the agreement, an exclusive Islamic personal finance deal will be available on purchasing a Harley-Davidson motorcycle.
Customers will also receive a free BHD150 (US$396) voucher to redeem motorcycle accessories, after completion of the Sharia-compliant personal finance agreement.
While Bahrain's automotive market is small, it is open and highly competitive, with high levels of car ownership. This does mean it is likely to enjoy lower levels of growth than some of the markets coming from a lower base, however.
About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff will help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.
Browse all Transportation research reports at Fast Market Research
You may also be interested in these related reports:
- Russia Autos Report Q1 2014
- Kuwait Autos Report Q1 2014
- Thailand Autos Report Q1 2014
- Serbia Autos Report Q1 2014
- United Arab Emirates Autos Report Q1 2014
- Algeria Autos Report Q1 2014
- Egypt Autos Report Q1 2014
- Hungary Autos Report Q1 2014
- Canada Autos Report Q1 2014
- Italy Autos Report Q1 2014
"Bahrain Autos Report Q1 2014" Published
New Transportation research report from Business Monitor International is now available from Fast Market Research