Kuwait Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in kuwait, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Automobile and Automotive Parts
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Overview 

Kuwait is a significant importer of new American automobiles and the 16th-largest U.S. export market for automobiles worldwide. Due to the low cost of fuel, as well as local tastes, there is a high demand for large automobiles such as trucks and SUVs. 

In 2024, Kuwait imported $4.79 billion in automobiles, becoming the 31st largest importer of automobiles in the world. In the same year, autos were the most imported product in Kuwait. Kuwait imports automobiles primarily from:  Japan, United States, PRC, European Union, and United Kingdom. Statistics show that new auto sales in Kuwait amounted to 116,844 vehicles in 2024.

 

Table: Automotive Marketshare In Kuwait:
Exporting Country/RegionMarket Share in Kuwait
Japan 42 percent
PRC 25 percent
United States 12 percent
South Korea 11 percent
Europe 7.3 percent
United Kingdom2.7 percent

Sport-utility vehicles (SUVs) are the dominant vehicle type in Kuwait, and Kuwait has an excellent market for high-end luxury and vintage automobiles. Also, an increased number of low-priced Chinese brands are entering the market.  

The automotive aftermarket is growing yearly in Kuwait and other GCC countries. This growth was spurred by grants for retirees and global pandemic front-line workers, as well as an allowance for government employees to trade excess leave for cash. 

Kuwait’s large used car market is increasing the demand for spare parts and maintenance services. The estimated dollar value for the total market for spare parts is more than $156 million, out of which $50 million is for American spare parts.  

Electric Vehicle Market in Kuwait

Kuwait’s EV market is still in the nascent stage, but strong growth is forecasted (from $51.2 million in 2023 to $1.1 billion by 2032). The Government of Kuwait has taken measures to support EVs by ensuring that every fuel station is equipped with at least one fast charging unit by the end of this year, and landlords are encouraged to allow installation of home wall boxes. In March 2024, MEWRE announced Kuwait’s renewable energy strategy, which for the first time allows Kuwaiti citizens to install rooftop solar panels encouraging the purchase of EVs. 

Kuwait achieved a significant milestone in electric vehicle (EV) readiness, securing the number three ranking in the Gulf Cooperation Council (GCC) region and number 14 globally (UAE 7th, Qatar 9th, and Saudi Arabia 21st) according to the Global Electric Mobility Readiness Index’s 2023 report. Kuwait is transitioning towards sustainable transportation and has a national goal to reach net zero carbon emissions in oil and gas sector by 2050 (all other sectors by 2060). In August 2021, the Kuwait Ports Authority approved a proposal to build the Middle East’s first EV city, which will provide all port and logistical services to major global players including electric car manufacturers. In October 2022, the final regulation for electric vehicle chargers was approved by both the Ministry of Public Works and Ministry of Electricity, Water and Renewable Energy (MEWRE).  The regulation includes definitions and technical specifications for electric chargers and will remain in force until December 2030.

Opportunities 

U.S. companies with specialized expertise can play a pivotal role in Kuwait’s developing EV market:

  • EV high-speed charging stations 
  • Battery electric vehicles (BEV)
  • Autonomous electric vehicles 
  • Plug-in hybrid electric vehicles (PHEV)
  • Hybrid electric vehicles (HEV)
  • Fuel cell electric vehicles (FCEV)

Regional Automotive Trade Shows

  • The Specialty Equipment Market Association (SEMA) Middle East Development Conference is the premier automotive specialty products trade event featuring specialty equipment. The show is held annually in March in Abu Dhabi. For more details, please visit the Specialty Equipment Market Association (SEMA).  
  • Automechanika Dubai is the region’s largest and most comprehensive trade and networking exhibition for the automotive aftermarket. The show is held in December, and dozens of American companies participate. Automechanika Dubai Website. 
  • MENA EV Show www.menaevshow.com, UAE.
  • EV Auto Show www.evautoshowonline.com, Saudi Arabia.

Resources 

For additional information on automobiles and the auto parts industry, please contact Senior Commercial Specialist Oday Dallah at oday.dallah@trade.gov

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