Slow But Steady Does It For The Autos Sector

Kuwait's auto market is set for slow but solid growth through 2010, reflecting a general upward trend in the economy as a whole. Despite a small decrease in sales during 2009, BMI expects sales volumes to return to pass their 2008 level of 122,632 units by 2011. Auto sales, like the economy at large, are closely connected closely to the price of oil. Indeed, 2.85% decrease in vehicle sales during 2009 can be seen as a reflection of the fall of oil from US$140 during late 2008 and early 2009. Combined with this, a general tightening of credit has made the purchase of big ticket items more challenging for many, especially in a population of which more than half are expatriate, and thus potentially non- permanent residents. We see total sales reaching 140,361 by the end of 2014.

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