Bahrain Auto Sales were severely hit in March by the Coronavirus outbreak, as the Government imposed the closure of all non-essential commercial enterprises from March 26 onwards. Indeed, the vehicle market lost 35.6% in March with 1.905 sales, ending the Q1 at 7.148 (-3.6%).
It was just yesterday
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 the 2015, with 65.042 sales, before to sharply decline to 38.000 units in 2017.
In 2018 the market was flat while in 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%.
In the beginning of 2020, the market was recording from the previous year drop, with Year to Date February sales at 5.243 (+17.6%).
A new Era has arrived
Said this, a new era started in March for the entire World, due to the Coronavirus outbreak. In order to slow down the spread of the virus, the executive committee of the Bahraini government imposed the closure of all non-essential commercial enterprises from March 26. Exceptions to this rule included supermarkets, banks, and healthcare facilities.
As a result, the vehicle market lost 35.6% in March with 1.905 sales, ending the Q1 at 7.148 (-3.6%).