Passenger Cars - Kuwait

Kuwait

Revenue in the Passenger Cars market is projected to reach US$3,495.0m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of -0.40%, resulting in a projected market volume of US$3,440.0m by 2028.
The market's largest segment is SUVs with a projected market volume of US$1,737.0m in 2024.
Passenger Cars market unit sales are expected to reach 91.58k vehicles in 2028.
The volume weighted average price of Passenger Cars market is expected to amount to US$38.06k in 2024.
With a vehicle unit sales share of 23.0% in 2024, Nissan is expected to have one of the highest market share in the selected region.
The value market share of the make BMW in the selected region is expected to stand at 40.0% in 2024.
From an international perspective it is shown that the most revenue will be generated in the United States (US$558bn in 2024).

Key regions: United States, Germany, Europe, China, India

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Region comparison

Currency

Analyst Opinion

The Passenger Cars market in Kuwait has been experiencing significant growth in recent years. Customer preferences have shifted towards more fuel-efficient and environmentally-friendly vehicles, leading to an increase in the demand for hybrid and electric cars. Additionally, the local government has implemented policies and regulations to promote the use of electric vehicles, further driving the market growth.

Customer preferences: In line with global trends, customers in Kuwait are increasingly concerned about the environmental impact of their vehicles. As a result, there has been a growing demand for fuel-efficient cars that emit lower levels of CO2. Hybrid and electric cars have gained popularity among consumers, as they offer a more sustainable and eco-friendly alternative to traditional gasoline-powered vehicles. Customers are also looking for advanced safety features and technological innovations in their cars, such as autonomous driving capabilities and connected car technologies.

Trends in the market: One of the key trends in the Passenger Cars market in Kuwait is the rising popularity of electric vehicles. The government has introduced various incentives and subsidies to encourage the adoption of electric cars, including tax exemptions, reduced registration fees, and free charging infrastructure. These initiatives have significantly boosted the sales of electric vehicles in the country. Additionally, car manufacturers have been introducing a wide range of electric models to cater to the growing demand. Another trend in the market is the increasing preference for SUVs and crossovers. Kuwaitis have a strong affinity for larger vehicles, as they offer more space and comfort. SUVs and crossovers also provide better off-road capabilities, which are particularly important in the desert terrain of Kuwait. As a result, car manufacturers have been focusing on expanding their SUV and crossover lineups to cater to the local market preferences.

Local special circumstances: Kuwait has a high per capita income, which has contributed to the growth of the Passenger Cars market. The country has a strong car culture, with car ownership being a status symbol for many Kuwaitis. Additionally, the government has invested heavily in infrastructure development, including the construction of new roads and highways, which has facilitated the growth of the automotive industry.

Underlying macroeconomic factors: The growth of the Passenger Cars market in Kuwait is also influenced by underlying macroeconomic factors. The country has a stable economy, with a strong oil industry that drives economic growth. The low oil prices in recent years have had a positive impact on consumer spending power, leading to an increase in car sales. Additionally, the government's focus on diversifying the economy has led to the development of other sectors, such as tourism and finance, which has further boosted consumer confidence and purchasing power.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of new passenger cars. Data on the specifications of the sold vehicles is based on the base models of the respective makes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use company reports and websites, vehicle registries, car dealers, and environment agencies among other sources. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and car stock per capita. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, we use the ARIMA model for the Passenger Cars market. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).