Market Trend and Outlook

Bahrain’s vehicle market in September 2023 falls for the second month in a row, reporting 2,041 new registrations (-8.9%). YTD figures at 20,234 are up 6.9% from the previous year.

Looking at cumulative data up to September 2023 brand-wise, the leader is still Toyota with a 14.5% growth in sales while holding 30.1% market share, followed by Hyundai which grew 40.3%. Nissan ranks in 3rd spot with a 20.8% year-on-year loss in sales.

The best selling car becomes the Toyota Land Cruiser up 1 spot and 38.0% in year-on-year sales, followed by the Isuzu D-Max up 108 spots in the rankings.

Medium-Term Market Trend

The economic crisis correlated with the fall of oil price in the international market hit the Bahrain automotive industry in 2016, with a delay compared with the other countries in the Gulf region. Indeed the market scored the all-time record in 2015, with 65,042 sales, before a sharp decline to 38,000 units in 2017.

In 2018 the market was flat while in 2019 it was again in a deep fall.

Indeed, in 2019 the economy was further hit by the government’s decision to introduce VAT tax from January 2019, with the effect to increase inflation and reduce consumer purchase power. Several consumer goods industries have declined and the automotive was certainly among them. Indeed, in the Full-year sales have been 31,836, down 18.1%.

Due to the COVID-19 pandemic sales fell in  2020. In fact, 26,437 units have been sold, reporting a decline of 16.9% compared to 2019.

In 2021 the year started slightly negatively for the Bahrain market, in fact, in Q1 7,251 units have been sold, reporting a 1.5% decrease in sales compared to Q1 2020, while in Q2 sales started growing again, reporting a 23.8% increase in sales with 6,428 units sold.

In Q3 sales kept gaining 7.7% with 6,428 units, followed by a 8% drop in Q4 with 7,227 sales.

Indeed, Full-Year sales for 2021 have been 27,528, reporting a 3.7% increase compared to 2020.

In Q1 2022 sales dropped 16.7% with 5,853 units sold, but started recovering 3.2% in Q2 with 6,483 units sold.

Tables with sales figures

In the tables below we report sales for Top 10 Brands.

Market Trend and Outlook

Bahrains’s vehicle market in December fell after gaining 5.6% in November, reporting 2,389 new registrations (-6.4%). Sales in 2022 totaled 25,744, a 4.0% loss from the prior year.

Looking at cumulative data from 2022 brand-wise, the leader is still Toyota with a 15.6% drop in sales while holding 29.3% market share, followed by Nissan which lost 5.6%. Hyundai ranks in 3rd spot with a 1.0% year-on-year growth in sales.

Tables with sales figures

In the tables below we report sales for Top 10 Brands.

Market Trend

Bahrain’s car market this year attempted to recover from the pandemic crash of 2020 and reported a very promising performance in Q2 and Q3, followed by another fall.

The economic crisis correlated with the fall of oil price in the international market hit the Bahrain automotive industry in 2016, with a delay compared with the other countries in the Gulf region. Indeed the market scored the all-time record in 2015, with 65,042 sales, before a sharp decline to 38,000 units in 2017.

In 2018 the market was flat while in 2019 it was again in a deep fall.

Indeed, in 2019 the economy was further hit by the government’s decision to introduce VAT tax from January 2019, with the effect to increase inflation and reduce consumer purchase power. Several consumer goods industries have declined and the automotive was certainly among them. Indeed, in the Full-year sales have been 31,836, down 18.1%.

Due to the COVID-19 pandemic sales fell in  2020. In fact, 26,437 units have been sold, reporting a decline of 16.9% compared to 2019.

In 2021 the year started slightly negatively for the Bahrain market, in fact, in Q1 7,251 units have been sold, reporting a 1.5% decrease in sales compared to Q1 2020, while in Q2 sales started growing again, reporting a 23.8% increase in sales with 6,428 units sold.

In Q3 sales kept gaining 7.7% with 6,428 units, followed by a 8% drop in Q4 with 7,227 sales.

Indeed, Full-Year sales for 2021 have been 27,528, reporting a 3.7% increase compared to 2020.

Brand-wise, this year the leader Toyota (-5.9%) lost 3.3% market share, followed by Nissan (+30.8%), which gained 2.2% share, and Hyundai which lost 0.5% share, losing 3.8%.  Lexus fell in 4th place and lost 19.2%, followed by Isuzu -up 2 spots- which gained 69.8%, and Honda which remained almost flat (+0.6%).

Kia lost 10.1% and fell 2 spots, followed by MG (+37.2%) and Mitsubishi which lost 4.6% sales. Closing the leaderboard we have Mazda losing 3.1%.

The most sold vehicle in the country remains the Toyota Land Cruiser with 2,429 units sold, gaining 14% sales and holding 8.8% share.

Tables with sales figures

In the tables below we report sales for Top 10 Brands.

Economic Environment

The economy contracted 8.9% in the second quarter, according to preliminary estimates, following a softer 1.1% decrease in the first quarter. Q2’s drop was led by a decline in the non-oil sector, while the oil sector managed to grow.

The external sector was hit the hardest, with tourism, and transport and communication services suffering as a consequence of the restrictions imposed at home and abroad to contain the spread of the pandemic.

Turning to Q3, activity is expected to have recovered somewhat thanks to the reopening of economies globally, while continued support from the Central Bank and the government should have helped to boost the economy. On the political front, on 15 September Bahrain followed the UAE’s steps in signing an agreement to normalize relations with Israel, which should enhance trade opportunities.

Market Trend

The Bahrain car market has been hit in 2020 by the world-wide COVID-19 pandemic, which has impacted sales significantly.

The light vehicles market is mirroring the economic environment of the country, hit by the covid-19 virus directly, with all restrictive measures to keep distances and minimize the virus circulation, and indirectly, by the fall of oil price in the international market.

Indeed, Full-Year sales for 2020 have been 26.437, reporting a decline of 16.9% compared to 2019.

Brand-wise, this year the leader Toyota (-12.3%) gained 1.9% market share, followed by Nissan (-29.4%), which lost 1.4% share, and Lexus which gained 2.2% share, rising 19.9%.  Hyundai fell in 4th place and lost 16.8%, followed by Kia -up 3 spots- which lost 1.4%.

The most sold vehicle in the country remains the Toyota Land Cruiser with 2.131 units sold, losing 36% sales and holding 8.1% share.

Tables with sales figures

In the tables below we report sales for Top Brands

Economic Environment

Market Trend

The economic crisis correlated with the fall of oil price in the international market hit the Bahrain automotive industry in the 2016, with a delay compared with the other countries in the Gulf region. Indeed the market scored the all time record in the 2015, with 65.042 sales, before to sharply decline to 38.000 units in the 2017.

In 2018 the market was flat while in the 2019 is again in deep fall.

Indeed, in the 2019 the economy was further hit by the government decision to introduce VAT tax from January 2019, with the effect to increase inflation and reduce consumer purchase power. Several consumer goods industries have declined and the automotive was certainly among them. Indeed, in the Full-year sales have been 31.836, down 18.1%.

Brand-wise, the market is a feud of Toyota. However, the Japanese icon has navigated well below the record share hit in 2014 with 42.1%. Indeed, Toyota held 34.6% of the market in 2019.

The best follower was really far and it was Nissan with a share of 9.7% (to be compared with a best in this decade of 13.5% in 2015), while the third was Hyundai, able to perform above the 10% in the period 2010-2014, but it 2019 holding just 6.5% of share.

Almost all brands have reported year-on-year losses, apart from the Chinese MG and Volkswagen, Isuzu and Audi.

Tables with sales figures

In the tables below we report sales for Top Brands

Economic Environment

Bahraini economy softened in Q4 2018 as ebbing crude oil prices dragged on the oil sector. Moreover, declining prices for aluminium, the country’s second-top export, could also have hit economic growth in the period. In more positive news, total non-oil exports accelerated notably in 2018, reflective of diversification efforts, while FDI climbed to an all-time high in the year.

The construction and manufacturing sectors should underpin growth in 2019, while fiscal discipline should boost business confidence and investment in the longer-term. That being said, the introduction of the VAT in January and a tighter fiscal stance will likely hurt domestic demand in the short-term.

Market Trend

Bahrain vehicles market ended in 2015 a long positive period, hitting the all-time record at 65.042 sales. However the economic crisis generated in the region by the fall of oil price in the international market have rapidly reduced the consumer’s demand and sales dropped to 49.800 in the 2016 and 38.260 in the 2017, down 23.2%.

In the 2018 the new vehicles light vehicles market has stopped the fall. Indeed, after a negative start, the year ended with sales at 38.872, improving 1.7% from the previous year. However, after having created a pull-ahead effect until December 2018, the introduction of VAT in January 2019 should penalize the start of the new year.

At brand-wise, the 2018 market leader Toyota has lost share selling 13.321 units (-6.3%) while the second, Nissan, soared to 27.7% at 4.505 units and the third, Hyundai reported a heavy loss. Honda jumped in fourth place, scoring a brilliant performance (+20%), with 1.919 units sold.

Tables with sales figures

In the tables below we report sales for Top Brands

Bahrain economy continues to grow at a moderate pace heading into 2018, with a marked contrast between the non-oil and oil sectors.

The non-oil sector is fairly dynamic, boosted by growth in tourism and a strong investment pipeline spearheaded by the GCC Development Fund, while the oil sector remains hampered by OPEC production cuts, which were recently extended through 2018. Encouragingly, the Q4 business confidence index produced by the Information and eGovernment Authority remained in positive territory

Bahrain vehicles market ended in the 2015 a long positive period, hitting the all time record at 65.042 sales. However the economic crisis generated in the region by the fall of oil price in the international market have rapidly reduced the consumer’s demand and sales dropped to 49.800 in the 2016 and 38.260 in the 2017, down 23.2%.

At brand-wise, the market leader Toyota has lost in line with the industry with 14.225 sales (-28.1%). It was followed, at an abysmal distance,  by Nissan with 3.528 (-25.7%) and Hyundai with 3.245 sales (-18.7%).

Tables with sales figures

In the tables below we report sales for Top Brands

Bahrain’s economy gained momentum in Q3 2016 after a weak showing in the previous quarter, with GDP rising at a faster pace thanks to strong growth in the country’s non-oil sector and job creation continuing at a brisk rate. The construction industry was at the heart of the improvement, propelled by unprecedented infrastructure investment, with a project pipeline totaling USD 69.7 billion in December.

Growth is expected to dip slightly this year, with the oil sector set to remain weak despite a predicted modest uptick in oil prices. Moreover, the looming risk of further interest rate hikes and the knock-on effect on borrowing costs is likely to growth.

Vehicles market reported a sharp fall in the 2016, ended with the fourth quarter down near 14%, prolonging the decline started in mid 2015 and boosted by economic effects of oil price fall. Light vehicles volumes ended the year at 49.669 units (-23.9%), falling back at the 2012 level , however the fourth highest ever.

The market leader, Toyota has lost a little more than the market (-25.4%) and Nissan did the same (-24.8%). Better performances had been done by the third, Hyundai (+3.2%). In fourth place and leader among premium brands, Lexus has lost 15.1% and was followed by Kia (-33.9%), Honda (-14.4%) and Isuzu (-7.5%).

At model wise, the best five models had been made by Toyota with podium unchanged from the previous year. The leader is the Toyota Land Cruiser  with 4.483 sales (-25.6%) followed by the Toyota Prado with 2.942 (-24.6%) and the Toyota Hilux with 2.773 (-40%).

Effective from January 1, 2018 it is anticipated that Bahrain will introduce a broad Valued Added Tax (VAT) at a rate of between 3-5%. All businesses in Bahrain will be affected since VAT will impact most sales of goods and services within Bahrain, where it is anticipated there would be limited exemptions and consumption tax relief. Effects on the sector should be positive in the second half of 2017, anticipating sales to avoid the 2018 price increase.

Tables with sales figures

In the tables below we report sales for Top Brands

Economic Outlook

In a rare show of defiance, the normally compliant Bahraini Parliament erupted in uproar as lawmakers opposed the newest cut on gasoline subsidies.

The cut resulted in a 60% increase in the price of gasoline at the pump and adds to a long list of products, ranging from kerosene to meat, for which subsidies have been slashed. Subsidies cuts are encountering fierce opposition and may destabilize the country’s delicate social balance.

Against this backdrop, the government is considering tapping international bond market this year to help cover its swelling fiscal deficit. This suggests that liquidity conditions in the banking system will tighten further.

Market Outlook

Bahrain domestic market ends the 2015 with two relevant news, one good one bad.

The good news is represented by the full year vehicles sales data hitting the 65.301 level, new all time record, the first in a row with volume doubled during the last 5 years. The growth of 4.6% was the smaller in the last sixth years introducing a new phase in the market.

In fact the bad news is the last quarter sharp fall. In the period sales had been 12.684, down 21% from the correspondent period last year showing a sharp and clear change of demand.

Furthermore, the government fiscal decision we reported in the “economic outlook” will block the demand and the market in the 2016 will fall down sharply.

In the full year 2015, Toyota confirmed market leadership improving sales at new record of 26.513 units (+1.1%) followed by Nissan, very far with 6.299 units (+3.3%) and Hyundai, reporting a sharp fall, at 3.865 units (-22.8%).

In the model wise, the top sixth were Toyota with Land Cruiser on top with 6.026 (+9.2%), followed by the Hilux with 4.641 (-3.4%) and the Prado with 3.901 (-25.3%).

Tables with sales figures

In the tables below we report sales for Top Brands