Bahrain 2019. Auto market lost 18.1% hit by VAT introduction

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Bahrain Auto Sales
Nissan-Kicks_Street_Sport_Concept-2019

Bahrain Auto Sales have sharply declined in 2019 hit by VAT introduction. Indeed, in the Full-year sales have been 31.836, down 18.1%. Controlling over one-third of the market, Toyota was on top of the list with a huge advantage over the top competitors, Nissan and Hyundai.

Economic Environment

Bahrain economic growth accelerated in the third quarter, after slowing to a near standstill in Q2, although it remained downbeat by historical standards. A strong expansion in the transport and communication, and manufacturing sectors, which collectively account for around one-fifth of total output, supported Q3’s acceleration.
Turning to Q4, the economy likely remained deflated, as suggested by continued compliance with OPEC+ production curbs through November. However, upbeat point-of-sale transactions in October suggest the non-oil private sector will continue to pick up the slack. In other news, the government recently announced a sharp reduction in visa prices, effective from January, in a bid to boost tourism.

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

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