Cars in use in Oman to reach 889,000 in 2020

Business Reporter -

MUSCAT  -

Dec 7: The number of passenger cars in use in Oman is projected to reach over 889,000 in 2020, translating into a five-year CAGR of 3.6 per cent. The country has witnessed a drop in new passenger car sales in last couple of years due to the economic slowdown, according to the GCC Automobile Industry report published by Alpen Capital, an investment banking advisory firm.

This phenomenon is anticipated to continue in the short-term.

Accordingly, Oman‘s share of the total GCC passenger cars in use is likely to drop from an estimated 7.2 per cent in 2015 to 6.8 per cent in 2020.

However, growing population and tourist arrivals is likely to revive demand in the years to 2020.

The Oman government‘s plan to develop various tourist spots and encourage private investments in development of tourism-related infrastructure is expected to increase international tourist arrivals by 6.3 per cent CAGR during the forecasted period.

Consequently, new car sales in the country are forecasted to reach nearly 135,000 units in 2020 from 121,100 in 2015. Oman through its sovereign wealth fund has made over a couple of investments to develop local vehicle manufacturing landscape.

Such investments are likely to strengthen the country’s automobile sector going forward.

The report provides a perspective of the GCC automobile sector by presenting the current state of the industry, market dynamics, and scope for future growth. It covers the recent trends, growth drivers, and challenges in the industry, along with an outlook until 2020.Lastly, the report profiles so me of the prominent automobile companies in the region.

“The GCC automobile sector is dynamic and one of the faster growing sectors in the world, primarily owing to the growing population and high disposable income coupled with significant infrastructure developments in the region.

The sector however is currently facing a slowdown amid a weak economic environment and low oil prices as consumers scale back new car purchases. Passenger Car sales will remain under pressure in 2017 but are likely to rebound in 2018 and thereon grow at a stable pace in anticipation of a recovery in oil. Other factors fueling growth include increasing disposable income, growing population and availability of attractive financing options in the country,” says Sameena Ahmad, Managing Director, Alpen Capital (ME) Limited.