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 2ND FLOOR I
OFFICE NO. 2
Tel:
+965 600-EXCPR (600-39277)
Website:
www.excpr.com
Email:
info@excpr.com
