Market share for Chinese Vehicles in Kuwait

 

Market Share for Chinese Vehicles in Kuwait

Annual Report 2023 – Market share

 

The observer of the change in the vehicles sector - whether at the global or even local level - is fully aware of the size of the growth and rapid movement witnessed by Chinese cars, which required us at EXCPR Consulting and Business Management CO to measure the database, in order to build it to the fullest. It is expected that Chinese vehicles will occupy the first positions in the near future, due to their competitive advantage in specifications in addition to their competitive prices. In addition, the link between the elements of safety and protection, in addition to the level of advanced technology, instead of attractive designs for cars, all made the activity of the sector clear in front of the local market during the past short period, which prompted many commercial agencies to invest in this emerging sector. More than 14 different Chinese vehicles brands compete in the local market in Kuwait, including more than 150 different models. Then, EXCPR CO has analyzed the local market to find out about the most popular brands in the current period – May 2023.

 

Import volume

The volume of imports from the People's Republic of China to the State of Kuwait amounted to about KD 1.8 billion - equivalent to USD 5.8 billion, according to a report by the Central Statistical Bureau. The results of the research indicate that the growth rate in these imports was at a rate of 4.4% per year.

 

Market size

The size of the market for vehicles imported into the State of Kuwait – until 2022 – about KD 2.7 billion annually – approximately USD 8.7 billion. The annual growth in demand for cars in the State of Kuwait was about 3.3%. The results of the EXCPR CO indicate that the size of the Chinese vehicles market in the State of Kuwait is about KD 52 million - about USD 174 million, as shown in the following table:

 

Value	Indicator
USD 8.7 billion	Vehicles sector size
3.3%	Vehicles sector growth rate
USD 174 million	Chinese vehicles market size
Around 1-2%	Chinese vehicles market share

 

Market share

More than 10 different companies compete in the local market in Kuwait, representing Chinese vehicles brands and dealerships. These brands include:

• Baic
• Bestune
• Chery
• Changan
• DFM
• Dorcen
• Exceed
• GAC Motor
• Geely
• GWM
• Haval
• Jetour
• Link & Co
• Maxus

 

EXCPR CO has collected and observed customer data, which reached about 1,200 entries. The results indicated that the market share of the brand "Geely" was the most prominent in the State of Kuwait, with a percentage of 23.5% of the total size of the local market. The second and third places went to the GAC and Changan brands with 22.3% and 21.8% respectively. Chinese vehicles brand Chery followed with a market share of 13.0%. As a result, the rest of the other brands account for about 19.4% of the current total domestic market. The following figure shows the market share of Chinese car brands in the domestic market:

 

 

 

In conclusion, EXCPR CO said that the volume of Chinese cars in the local market currently does not exceed 1.5% at best, but it is expected that every house will have at least one car within the next 5-10 years, due to the advantage of that industry. There is also competition between three Chinese vehicles companies in the domestic market, which needs to be re-examined after a year to determine growth and changes. On the other hand, this movement witnessed by the Chinese automotive sector in the State of Kuwait was the first bilateral relationship established by the State of Kuwait from the People's Republic of China in 2018. It is expected that Chinese car dealerships in the State of Kuwait will continue to compete in the field of service and after-sales service, by investing more in their infrastructure and production sources, to keep pace with rapid future demand.

EXCPR CO

Consultancy & Business Management

Above Management

P.O. BOX 21407 – SAFAT 13075 KUWAIT

SHARQ  I  AHMED ALJABER STREET  I  ALMISBA TOWER  I  2^ND FLOOR  I  OFFICE NO. 2

Tel: +965 600-EXCPR (600-39277)

Website: www.excpr.com

Email: info@excpr.com