Overview

The automotive sector in Qatar has fully recovered from the impact of the COVID-19 pandemic. 2021 was a successful year, with overall growth of close to 25% compared to 2020. Sales in 2021 surpassed the pre-pandemic numbers of 2019.

When comparing new vehicle registration (new sales) for the first half of 2022 (January to June), the Qatari market has aggressively surpassed 2020 levels. The highest growth can be seen in motorcycle sales, with an increase of almost 250% in 2021 fueled by Qatar’s growing online food delivery services. Growth also took place in the transportation (24.5%) and heavy equipment (35%) subsectors, though these areas are expected to slow significantly in 2023 as the FIFA World Cup 2022-related construction projects conclude. Qatar’s North Field Expansion project will likely drive continued growth in the automotive sectors in the upcoming years.

In terms of brand recognition and market participation, Asian brands continue to dominate the market. High demand for spare parts such as brake pads, transmission controls, AC functions, coolant, wipes, and belts continue to prevail in 2022. Aftermarket parts manufactured in the United States are an opportunity for U.S. suppliers in this sector since high quality is associated with American products. However, the spare parts market is quite competitive with high-quality products from Japan and Korea and low-cost products from Turkey and China. Demand for spare parts, car care products, and accessories will continue to grow as the number of used vehicles increases in the market. Counterfeit parts remain a concern in Qatar.

Electric vehicle (EV) adoption continues, Qatar is taking serious steps towards electrification. It has announced the installation of 600 charging stations to support electric buses during the 2022 FIFA World Cup, with the goal to have electric buses make up 25 percent of its public transit bus fleet. EVs can be spotted in Doha, mainly direct imports, but the largest car dealers are starting to offer hybrid versions of combustion cars. Qatar is a platform for car manufacturers to showcase their newest models in the Middle East and to the world. In 2023, Doha will host the International Motor Show, which is traditionally held in Geneva.

While Qatar does not have domestic auto production, it has automotive investments in several countries, including bus production in Oman and vehicle production in Turkey. The Qatar Investment Authority also owns a stake in German carmaker, Volkswagen, and in Quantumscape, a California-based company that develops solid state lithium metal batteries for electric cars.

Sub-Sector Best Prospects

• Electric Vehicles
• Car care products
• Aftermarket parts, accessories, and spare parts

Opportunities

• Tenders published by the different governmental institutions
• Market penetration through partnership with local distributors
• Local Manufacturing: To support Qatar’s Vision 2030, the government seeks successful partnerships that can help develop local manufacturing capabilities and transfer knowledge. Entities such as the Qatar Science & Technology Park (QSTP) and the Qatar Free Zones Authority (QFZA) are instrumental to support this strategy.

Trade Shows

• 2023 SEMA Middle East Business Development Conference; arch 2023; Dubai, UAE
• International Motor Show Qatar (GIMS) 2023; November 2023; Doha Exhibition & Convention Center (DECC), Qatar

Resources

Ministry of Transport of Qatar

Planning and Statistics Authority of Qatar

Contact the Commercial Section of the U.S. Embassy in Qatar.