This is a best prospect industry sector for this country. Includes a market overview and trade data.
The automotive sector is still recovering from the impact of the pandemic. 2020 was a particularly difficult year for the sales of new vehicles in Qatar, where the market saw an overall negative 12.5% variation when compared to 2019.
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Qatar New Vehicle Registrations: 2019 v 2020 Comparison |
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Total 2019 |
Total 2020 |
YoY Var |
|
Private (Light vehicles) |
45,979 |
37,248 |
-19.0% |
|
Motorcycles |
3,205 |
3,678 |
14.8% |
|
Transport (Buses) |
13,167 |
13,004 |
-1.2% |
|
Trailers |
515 |
373 |
-27.6% |
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Heavy Equipment |
1,635 |
2,037 |
24.6% |
|
Others |
1,179 |
1,111 |
-5.8% |
|
Total |
65,680 |
57,451 |
-12.5% |
When comparing new vehicle registration (new sales) for the first three quarters of the year (January to September), the Qatari market recovered and slightly surpassed 2019 levels. The highest increase can be seen in Heavy Equipment sales with an increase of 64.6% versus 2019 figures, explained by high activity in the construction sector as Qatar prepares to host the FIFA World Cup 2022 and eased COVID restrictions. Motorcycle sales experienced a 23.6% increase in 2021 over 2019, fueled by Qatar’s growing online food delivery sector.
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Qatar New Vehicle Registrations: 2019, 2020, 2021 Q1-3 (Jan-Sep) |
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2019 Q1-3 |
2020 Q1-3 |
2021 Q1-3 |
Var 2021 v 2019 |
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Private (Light vehicles) |
33,042 |
26,639 |
33,287 |
0.7% |
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Motorcycles |
2,349 |
2,624 |
2,903 |
23.6% |
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|
Transport (Buses) |
9,734 |
9,089 |
11,433 |
17.5% |
|
|
Trailer |
357 |
258 |
269 |
-24.6% |
|
|
Heavy Equipment |
1,168 |
1,331 |
1,922 |
64.6% |
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|
Others |
766 |
942 |
507 |
-33.8% |
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Sub-Total |
47,416 |
40,883 |
50,321 |
6.1% |
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In terms of brand recognition and market participation, Asian brands continue to dominate in the market. High demand for used 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 for European models are an opportunity for U.S. suppliers. Demand for spare parts, car care products, and accessories will continue to grow as the number of both used and new vehicles increases in the market. Counterfeit parts remain a concern in Qatar.
Electric vehicle (EV) adoption is still at an early stage, but Qatar is taking serious steps towards electrification. Qatar plans to install 600 charging stations to support electric buses in advance of the 2022 FIFA World Cup and it aims to have 25% of Qatar’s public transit bus fleet from gasoline to electric by 2022. Qatar aspires to become a platform for car manufacturers to showcase their newest EV models in the Middle East.
Qatar does not have domestic auto production, but 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.
Sub-Sector Best Prospects
- Car care products
- Aftermarket parts, accessories, and spare parts
Opportunities
- Public tenders
- Market penetration through the appointment of distributors
Resources
Commercial Section of the U.S. Embassy in Doha
Planning and Statistics Authority of Qatar