Boston, MA -- (SBWIRE) -- 07/22/2014 -- A total of 180,000 new vehicles were sold in Kuwait in 2013, according to information from the Focus2Move website. This represented 9.4% growth on the previous year. Looking forward, BMI remains upbeat on the medium-term outlook for the Kuwaiti new vehicle sales market, with the country offering strong growth potential in both the volume and high-end segments.
For 2014, BMI retains its GDP growth forecast of 2.9% this quarter. We forecast a modest expansion in Kuwait's economy over 2014 and beyond, though growth will lag the rest of the Gulf Cooperation Council (GCC). The non-oil sector will be the main growth driver on the back of strong domestic demand and a modest pick-up in government capital spending. While we remain fundamentally cautious about the country's medium-term investment outlook, we note that higher growth in bank lending over the last few months of 2013 and signs of progress on some of Kuwait's development projects have improved the growth prospects for gross fixed capital formation. This could help lend support to demand for commercial vehicles within the country in particular.
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Moreover, the outlook for private consumption - a key indicator of likely demand for new passenger vehicles - continues to be broadly positive, with BMI forecasting growth of 3.5% in 2014. Further supporting our upbeat view is the fact that the ARA index of consumer confidence has been ticking higher in recent months and growth in the number of point of sale transactions (a proxy for retail activity) has remained elevated, standing at 16.3% year-on-year (y-o-y) in Q413.
In addition, ongoing efforts to improve Kuwait's business environment and invest more in capital infrastructure - including planned new airport terminals and ports - could well help to drive domestic commercial vehicle sales upwards as well.
Against this backdrop, BMI believes that strong growth in Kuwaiti new car sales (in the order of 8-11% per annum) can be maintained until the end of our forecast...
The Kuwait Autos Report features the latest data and forecasts covering production, sales, imports and exports.
Business Monitor International (BMI)'s Kuwait Autos Report provides industry professionals and strategists, corporate analysts, auto associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on the automotives market in Kuwait.
- Benchmark BMI's independent automotives industry forecasts on Kuwait to test other views - a key input for successful budgetary and planning in the Kuwaiti automotives market.
- Target business opportunities and risks in the Kuwaiti automotives sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Kuwait.
- Assess the activities and market position of your competitors, partners and clients via our Competitive Landscape Analysis.
BMI Industry View
Summary of BMI's key industry forecasts and views, covering production, sales and the introduction of new technology or products.
Global, Regional and Country Industry Overviews
In-depth analysis of the major global and regional developments in the market, which can be linked with the country industry overview, providing cross-country investment, product and financing trends that will affect each market, supported by BMI?s global and regional industry forecasts.
Business Environment Rankings
BMI's proprietary Autos Business Environment Rankings are a unique country-comparative Risk-Reward Rankings index that separately analyses the risks and rewards of operating in each market. It is aimed at investors (including manufacturers, suppliers and dealers) who seek to either identify and compare market opportunities, or evaluate country-specific operational challenges.
The rankings methodology makes sophisticated use of over 40 industries, economic and demographic data points.
BMI Industry Forecasts
Historic data series and forecasts to end-2018 for all key industry indicators (see list below), supported by explicit assumptions, plus analysis of key downside risks to the main forecast, including:
Total production value (US$bn); total production of units; production by vehicle-type (including cars, commercial vehicles, trucks and buses); total sales value (US$bn); sales by vehicle-type, including passenger cars and commercial vehicles (vans and microbuses, pickups, trucks and buses, 4 wheel drive); total exports by value (US$bn) and by units; total imports by value (US$bn) and by units; contribution to GDP; employment in industry.
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