Market Trend and Outlook

Oman’s light vehicle market in September 2023 falls for the 9th month in a row, with new registrations at 4,093 (-31.2%). YTD figures at 41,498 are down 14.6% from the previous year.

Looking at cumulative data up to September 2023 brand-wise, the leader Toyota is on top of the rankings with 47.4% market share and 19,667 sales (-9.0%) and a huge gap over all others.

In second place MG with 4,271 units sold (+14.7%), followed by the Hyundai reporting a strong loss in volume and accumulating 3,015 sales (+21.4%).

Looking at specific models the Toyota Hilux maintains leadership despite reporting a 35.5% year-on-year loss in sales, followed by the Toyota Land Cruiser up 8.7%.

Medium-Term Market Trend

Omani vehicles market was one of the fastest-growing worldwide in the period 2003-2013 and, at the end of a long series of annual all-time records, the market achieved a significant level of 213,000 sales in 2013.

Unfortunately, the economic crisis created by the fall of oil price in the international market and the persistently low level of this primary resource for the country economy severely hit the demand for consumers good, and the new vehicles market started a decline not yet ended.

Despite postponing the VAT introduction, the government has not been able to improve the economic trend, and even in 2019, the new light vehicles market has lost terrain. 

Due to the COVID-19 pandemic sales further fell in  2020 and in 2021 the recovery did not started with sales reaching the lowest level in the last 15 years at 74.700.

In 2022 Oman’s economic recovery is gaining traction, supported by revival in the hydrocarbon sector and the relaxation of Covid-19 social restrictions. High oil prices, continued fiscal consolidation under the authorities’ Medium Term Fiscal Plan, and determined implementation of structural reforms under Oman Vision 2040, are expected to generate fiscal and external surpluses and support higher growth over the medium term. However, heightened global uncertainties continue to cloud the outlook, with downside risks dominating in the short run.

Tables with sales figures

In the tables below we report sales for top 10 Brands and top 10 models.

Market Trend and Outlook

Oman’s economic recovery is gaining traction. Strong vaccination efforts have allowed for the relaxation of all social distancing restrictions. Overall GDP growth rebounded from -3.2 percent in 2020 to 3.0 percent in 2021, and is projected at 4.3 percent in 2022, supported by increased hydrocarbon production and continued recovery of non-hydrocarbon economic activity.

However, demand for new vehicles still remains low in 2022. The Light Vehicle Market this year falls for the 9th year in a row, totaling 64,331 sales (-10.8%). Despite reporting substantial losses throughout the 2022, the year ends with December posting an 11.2% increase in sales with 6,000 new registrations.

Looking at cumulative data from 2022 brand-wise, the leader Toyota is back over 44% market share with 30,111 sales (-10.1%) and a huge gap over all others.

In second place Nissan sold 7,371 units (-41.8%) while the Chinese MG kept gaining reaching the third position with 5,157 sales (+50.3%).

Tables with sales figures

In the tables below we report sales for top 10 Brands and top 10 models.

Market Trend

The Oman car market this year was unable to recover effectively, reporting a positive performance only in Q2.

Omani vehicles market was one of the fastest-growing worldwide in the period 2003-2013 and at the end of a long series of annual all-time records, the market achieved a significant level of 213,000 sales in 2013.

Unfortunately, the economic crisis created by the fall of oil price in the international market and the persistently low level of this primary resource for the country economy severely hit the demand for consumers good, and the new vehicles market dropped down for the following 5 years, ending 2018 at 127,546 units, near 40% below the record.

Despite postponing the VAT introduction, the government has not been able to improve the economic trend, and even in 2019, the new light vehicles market has lost terrain. Indeed, Total sales in 2019 have been 111,608, down 12.5%

Due to the COVID-19 pandemic sales fell in  2020. In fact, 74,600 units have been sold, reporting a decline of 33.2% compared to 2019.

In 2021 the year started negatively for the Oman market, in fact, in Q1 21,495 units have been sold, reporting a 13.1% decrease in sales compared to Q1 2020, while in Q2 sales increased quickly, reporting a 115.3% increase in sales with 17,406 units sold due to the extremely low sales experienced in Q2 2020.

In Q3 17,936 units have been sold, reporting a decrease of 8.4% sales, and in Q4 sales were 17,544 (-21.4%).

Indeed, Full-Year sales for 2021 have been 74,381, reporting a 0.5% decrease compared to 2020.

Brand-wise, this year the leader Toyota (+3.2%) gained 1.8% market share, while in second place we have Nissan (-29.6%), which lost 7.1% share, followed by Hyundai -up 2 spots- which gained 1.3% share, gaining 32.8%.  MG –up 3 spots- reached 4th place and reported the best performance by rising 102.5%, followed by Lexus which fell 2 spots and fell 12.6%.

Isuzu gained 36.4%, followed by Kia (-24.8%) -down 3 spots-, and Mitsubishi which gained 27.2% sales. Closing the leaderboard we have Mazda gaining 23.8% this year and Honda -up 1 spot- in last place gaining 17.7%.

The most sold vehicle this year is the Nissan Sunny (+16.7%) with 10,920 units sold, followed by the Toyota Hilux (+47.3%) registering 10,717 new sales this year. The Toyota Land Cruiser P/U (-20.1%) closes the podium and reports 6,092 new units sold.

Tables with sales figures

In the tables below we report sales for top 10 Brands and top 10 models.

As far as the best selling cars ranking, while our report assembles data from the 6 countries which are part of the Gulf Cooperation Council, this ranking is heavily conditioned by the trend in Saudi Arabia which counts nearly as more than half of the regional sales.

As far as the best-selling models in the region, the exclusive ranking we publish today shows clearly the leadership of Toyota, holding 6 models out of the best 10.

Indeed, the Toyota Hilux, the “king of the desert” is on top of the list with 45.865 sales (-17.4%) followed by the previous leader, the Toyota Land Cruiser with 42.325 sales (-29.6%), and the Toyota Camry -up 3 spots- with 35.882 sales (-6.4%).

In fourth place we have the Nissan Sunny -down 1 spot- with 32.726 sales (-30.2%) followed by the Hyundai Elantra with 27.992 sales (-29.1%), the Nissan Patrol -up 2 spots- with 27.019 sales (-8%) and the Hyundai Accent -down 3 spots- with 24.162 sales (-46.3%).

In eighth place we have the Toyota Corolla -up 1 spot- with 19.797 units (-30.7%), followed by the Toyota Land Cruiser P/U entering the leaderboard with 19.447 units (-15.7%) and in 10th place the Toyota Yaris sedan -down 3 spots- with 17.891 units(-40.9%).

Tables with sales figures

In the tables below we report sales for all top 50 models.

Market Trend

The Omani car market has been hit in 2020 by the world-wide COVID-19 pandemic and by the fall of oil price in the international markets, which have impacted sales significantly.

After starting the year very positively (+18.4% in January and +27.9% in February), the market quickly collapsed in March as the virus struck, followed by the quick fall of the oil price. The sharpest drop in sales this year was in April when sales declined by 77.5%. The market did not recover very effectively for the rest of the year, in fact, all the following months reported double-digit sales drops. 

Indeed, Full-Year sales for 2020 have been 74.600, reporting a decline of 31.3% compared to 2019.

Brand-wise, this year the leader Toyota (-42.7%) gained 7.3% market share, reaching over 50% of all vehicles sold in the country. In second place we have Nissan (-1.2%), which gained 7.9% share, followed by Lexus -up 1 spot- which lost 0.7% share, falling 423%.  Kia –up 1 spot- reached 4th place and lost 27.2%, followed by Hyundai which fell 2 spots by reporting the worst performance in the leaderboard (-56.2%).

Isuzu remained in 6th place and lost 7.1%, followed by MG (+111.9%) -up 8 spots-  which reported the best performance in the leaderboard, and Mitsubishi -down 1 spot- which lost 31.9% sales. Closing the leaderboard we have Mazda -down 1 spot- losing 50.2% this year and Jeep -up 2 spots- in last place losing 13.3%.

The most sold vehicle this year is the Nissan Sunny (+35.2%) with 9.354 units sold, overtaking the Toyota Land Cruiser P/U (-13%) registering 7.623 new sales this year. The Toyota Hilux (-41.3%) closes the podium and reports 7.278 new units sold.

Tables with sales figures

In the tables below we report sales for top 10 Brands and top 10 models.

Market Trend

The Omani car market has been hit in 2020 by the world-wide COVID-19 pandemic and by the fall of oil price in the international markets, which have impacted sales significantly.

After starting the year very positively (+18.4% in January and +27.9% in February), the market quickly collapsed in March as the virus struck, followed by the quick fall of the oil price. The sharpest drop in sales this year was in April when sales declined by 77.5%. The market did not recover very effectively for the rest of the year, in fact, all the following months reported double-digit sales drops. 

Indeed, Full-Year sales for 2020 have been 74.600, reporting a decline of 31.3% compared to 2019.

Brand-wise, this year the leader Toyota (-42.7%) gained 7.3% market share, reaching over 50% of all vehicles sold in the country. In second place we have Nissan (-1.2%), which gained 7.9% share, followed by Lexus -up 1 spot- which lost 0.7% share, falling 423%.  Kia –up 1 spot- reached 4th place and lost 27.2%, followed by Hyundai which fell 2 spots by reporting the worst performance in the leaderboard (-56.2%).

Isuzu remained in 6th place and lost 7.1%, followed by MG (+111.9%) -up 8 spots-  which reported the best performance in the leaderboard, and Mitsubishi -down 1 spot- which lost 31.9% sales. Closing the leaderboard we have Mazda -down 1 spot- losing 50.2% this year and Jeep -up 2 spots- in last place losing 13.3%.

The most sold vehicle this year is the Nissan Sunny (+35.2%) with 9.354 units sold, overtaking the Toyota Land Cruiser P/U (-13%) registering 7.623 new sales this year. The Toyota Hilux (-41.3%) closes the podium and reports 7.278 new units sold.

Tables with sales figures

In the tables below we report sales for top 10 Brands and top 10 models.

Economic Environment

Economic growth slowed in 2019, as suggested by a year-on-year dip in oil production in January–November. Moreover, the non-oil economy remained subdued: Bank lending to the private sector remained downbeat through November, potentially dampening both private consumption and fixed investment.

In addition, government spending dropped slightly in January–November, while a sharper fall in revenues resulted in a small widening of the fiscal deficit. On the external side, although the merchandise trade surplus widened in January–September, this was due to imports dropping faster than exports. More positively, however, inflation was muted in January–November, boding well for private consumption.

Oman plans to introduce value-added tax in 2021. All six Gulf Arab states agreed to introduce 5% VAT in 2018 after that the slump in oil prices hit their revenues, but Oman, whose financial position is the weakest of the six, delayed the tax introduction, initially at September 2019 and now in the 2021.

Market Trend

Omani vehicles market was one of the fastest growing worldwide in the period 2003-2013 and at the end of a long series of annual all time record the market achieved the significant level of 213.000 sales in the 2013.

Unfortunately, the economic crisis created by the fall of oil price in the international market and the persistent low-level of this primary resource for the country economy, severely hit the demand for consumers good and the new vehicles market dropped down for the following 5 years, ending the 2018 at 127.546 units, near 40% below the record.

Despite postponing VAT introduction, the government has not been able to improve the economic trend and even in 2019 the new light vehicles market has lost terrain. Indeed, Total sales in 2019 have been 111.608, down 12.5%.

Toyota was the leader in Oman as in the rest of the region and in 2019 obtained a market share above 50% with a wide gap over the closer challengers which were Nissan and Hyundai, ending respectively with 16.3% and 5.6%.

Tables with sales figures

In the tables below we report sales for Top Brands

Oman Auto market in 2018 posted the 5th fall in a row with 127.546 sales (-13.9%) at the lowest level in this decade. The market suffer the reduced public investment and spending and the austerity measures aiming to support the fiscal budget, as oil price revenues fall. Outlook is still not positive

Economic Environment

Oman economy performed well in 2018 as higher average oil and gas prices, coupled with increased hydrocarbon output, translated into stronger public finances and export growth.

Government revenue climbed by over a third in the January–November period compared to the same period a year earlier, leading the fiscal deficit to fall by over 40%. Meanwhile, in January–September, merchandise exports also climbed by over a third year-on-year.

Increased output from the Khazzan-Makarem gas field, stronger fixed investment and the government’s push to strengthen non-hydrocarbon output should support overall economic growth this year. Nevertheless, the economy still faces large fiscal imbalances, weighing on prospects.

VAT Introduction

Back in June 2016, all six Gulf Cooperation Council (GCC) member states signed the Common VAT Agreement. It was agreed that each GCC Member State would introduce a VAT system at a rate of 5%.

In early 2018 Oman’s Ministry of Finance postponed the introduction date of the new VAT system, it is expected to be implemented in 2019. Oman’s Minister of Finance, Darwish bin Ismail al-Balushi, approved the introduction of VAT on March 28 via Ministerial Decision No. 64⁄2018.

A late September 2018 report in the Gulf Digital News (GDN) website stated that Oman would introduce VAT on September 1, 2019.

Market Trend

Omani vehicles market hit an impressive all-time record in the 2013 with 213.000 sales, following a ten years long rally, but losing fuel for further growth. In the 2014 it was stable before to start falling down, hit by several factors, including oil price decrease, cut of public investment and spending, introduction of austerity measures to support fiscal budget.

Finally, the introduction of VAT system, initially scheduled for January 2018 and then postponed, create more uncertain regarding vehicles value reducing the demand.

The final effect has been a 2018 market volume dropped at 127.546 units, down 13.9% from the previous year, at the lowest level in this decade.

The 2019 outlook is further not positive. While the market should show recovery in the first three-quarters, the VAT introduction in September should increase price moving the market again down in the Q4. And the current low-level of oil in the international market is not helping.

Brand-wise, the 2018 market leader was Toyota losing 14.4% and selling 61.777 vehicles, with market share at 48.4%. In second place Nissan, down 5.3% with 26.491 units, ahead of Hyundai with 7.439 (-32.7%) and Lexus with 5.636 (-8.3%).

Tables with sales figures

In the tables below we report sales for Top Brands

GCC Vehicles Market in 2015 ended a long growing run with a record volume of 1.786.000 light vehicles sold. Then the economic crisis generated by the sharp fall of oil price in the international market hit the sector with annual volume declined in the 2017 at only 1.172.000 units, down  17.3% from the previous year.

As far as the best-selling models in the region, the exclusive ranking we publish today shows clearly the leadership of Toyota, holding 5 models out of the best six.

Indeed, the Toyota Hilux, the “king of the desert” is on top of the 2017 list with 62.207 sales (-29.2%) followed by the Toyota Land Cruiser with 52.773 (-10.0%) and the Toyota Camry with 52.751 (-2.0%) to complete a podium all Toyota branded.

In fourth place the Nissan Patrol with 42.562 sales (+15.5%) followed by the Toyota Prado with 35.925 (-22.3%), the Hyundai Accent with 35.091 (-42.4%) and the Hyundai Elantra with 34.101 (-36.8%).

In ninth place the Hyundai Sonata, the third Hyundai in the top 10, with 32.438 units (-9.9%) and in 10th place the Toyota Yaris sedan with 29.924 (-16.8%).

The Cooperation Council for the Arab States of the Gulf (Arabic: مجلس التعاون لدول الخليج‎), originally (and still colloquially) known as the Gulf Cooperation Council (GCC, مجلس التعاون الخليجي), is a regional intergovernmental political and economic union consisting of all Arab states of the Persian Gulf, except for Iraq. Its member states are Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. The Charter of the Gulf Cooperation Council was signed on 25 May 1981, formally establishing the institution.

A common market was completed and fully operational on 1 January 2015 allowing full equality among GCC citizens to work in the government and private sectors, social insurance and retirement coverage, real estate ownership, capital movement, access to education, health and other social services in all member states. However, some barriers remained in the free movement of goods and services. The coordination of taxation systems, accounting standards and civil legislation is currently in progress.

GCC Vehicles Market in 2015 ended a long growing run with a record volume of 1.786.000 light vehicles sold. Then the economic crisis generated by the sharp fall of oil price in the international market hit the sector with annual volume declined in the 2017 at only 1.172.000 units, down  17.3% from the previous year.

Please note that Yemen is not in GCC, while is included in our report for geographical position.

	Sales 2012	Sales 2013	Sales 2014	Sales 2015	Sales 2016	Sales 2017	Sales 2018 e
Bahrain	46.696	54.323	62.239	65.042	49.807	38.260	35.264
Kuwait	126.290	154.635	162.719	162.402	115.986	106.913	113.866
Oman	202.740	217.924	214.896	201.169	158.490	148.039	154.842
Qatar	83.913	90.249	100.128	96.581	72.945	54.280	51.259
Saudi Arabia	691.942	746.857	821.635	844.581	715.472	544.721	496.605
UAE	291.637	342.524	391.513	408.252	311.048	276.081	276.613
Yemen	5.615	14.696	6.176	8.658	3.025	3.938	3.933
Total	1.448.833	1.621.208	1.759.306	1.786.684	1.426.773	1.172.232	1.132.381

	2012 Var	2013 Var	2014 Var	2015 Var	2016 Var	2017 Var	2018 var e
Bahrain	50,0%	16,3%	14,6%	4,5%	-23,4%	-23,2%	-7,8%
Kuwait	20,0%	22,4%	5,2%	-0,2%	-28,6%	-7,8%	6,5%
Oman	20,1%	7,5%	-1,4%	-6,4%	-21,2%	-6,6%	4,6%
Qatar	34,6%	7,6%	10,9%	-3,5%	-24,5%	-25,6%	-5,6%
Saudi Arabia	16,4%	7,9%	10,0%	2,8%	-15,3%	-23,9%	-8,8%
UAE	24,2%	17,4%	14,3%	4,3%	-23,8%	-11,2%	0,2%
Yemen	23,8%	161,7%	-58,0%	40,2%	-65,1%	30,2%	-0,1%
Total	20,6%	11,9%	8,5%	1,6%	-20,1%	-17,8%	-3,4%