Kuwait - Automobile and Automotive PartsKuwait - Automobiles and Parts
Overview
Kuwait is a significant importer of new American automobiles and is the eighth-largest U.S. export market for automobiles worldwide. The low cost of fuel, combined with local tastes and preferences, buttresses demand for large-sized automobiles. With U.S. automobile exports (excluding military vehicles) to Kuwait valued at $ 716 million in 2017, this is the largest sector for U.S. exporters in the consumer market. Every year Kuwait imports an average of 100,000 new vehicles. Japanese cars have the largest market share with 52%, U.S. brands are the second with 18% market share, Korean brands are third with 16%, followed by 11% share for European brands. With 43 percent of the market, sport-utility vehicles (SUVs) are the dominant vehicle type in Kuwait. Kuwait is also an excellent market for high-end luxury and vintage automobiles.The automotive aftermarket is growing in Kuwait and other GCC countries by about 14%. Local experts estimated the value of the market to be $1.3 billion for Kuwait in 2017. Having a large used car market is helping to increase the demand for spare parts and maintenance services. Because of that, U.S. parts increased from $19 million in 2016 to $26 million in 2017.
Automobile, Light Trucks, Van and Utility Vehicles:
Unit: Per Vehicle
| 2015 | 2016 | 2017 | |
| Total Market Size | 109,670 | 92,133 | 100,000 Est. |
| Total Local Production | 0 | 0 | 0 |
| Total Exports | 0 | 0 | 0 |
| Total Imports | 109,670 | 92,133 | 100,000 Est. |
| Imports from the US* | $ 805,560 (mn) | $ 678 (mn) | $716,249 (mn) |
(*) Estimated, (bn) Billion, (mn) Million,
(1) Source: The United States Census Bureau
(2) Source: Kuwait Ministry of Interior
Due to lower oil prices, automobile sales dropped in 2016 and still did not fully recover in 2017.
Opportunities
Kuwait is a lucrative market for large-sized SUVs with heavy-duty shock absorbers, transmissions, cooling and air conditioning systems, and tires that meet extreme temperatures. Luxury automobile manufacturers will also find Kuwait to be an excellent market. Given Kuwait’s leading position in supply chain and logistics services to Iraq and Afghanistan, companies are selling large volumes of trucks to serve logistics companies catering to U.S. and coalition forces in the region. Most auto dealers note that the utility vehicle market demonstrates tremendous volume growth. While Kuwait increased gasoline prices by forty percent on September 1, 2016, prices are still among the lowest in the world – approximately $1.15 per gallon, which propels sales for SUVs and other large engine vehicles.The Kuwait International Fair hosts an annual automobile exhibition in December. Information can be found on the KIF website. The largest Gulf auto show takes place in Dubai. Visit the Dubai Motor Show website for more information.
The Specialty Equipment Market Association (SEMA) Middle East Development Conference is the premier automotive specialty products trade event featuring specialty equipment. The show is held annually in March in Abu Dhabi. For more details, please visit the SEMA Middle East website.
Automechanika Dubai is the region’s largest and most comprehensive trade and networking exhibition for the automotive aftermarket. The show is held annually in May and dozens of American companies participate in this show. Please visit the Automechanika Dubai Website.
Automechanika Frankfurt is the world’s leading Trade Fair for the Automotive Industry. Automechanika offers a unique spectrum of products from the fields of automotive parts, car washing, workshop and filling-station equipment, IT product and services, accessories and tuning. It takes place every September. Visit the Frankfurt Automechanika webpage for more details.
The U.S. Embassy Commercial Section is recruiting a delegation of Kuwaiti buyers to the SEMA show in Las Vegas October 30- November 2, 2018. Visit the SEMA show webpage for more information about the show.