Yemeni Vehicle Market in 2024 shrank 7% after hitting its highest level of the decade the year before. While most top 10 brands saw losses, Kia and Suzuki were the only ones to grow.
Economic Environment
Yemen’s GDP is expected to shrink by 1% in 2024 after a 2% decline in 2023, deepening an already severe economic and humanitarian crisis. The ongoing Houthi blockade on oil exports has caused a 42% drop in fiscal revenues, weakening the government’s ability to provide essential services.
The Yemeni Rial continues to depreciate, while food insecurity has reached historic levels, affecting over 60% of the population. Economic fragmentation between Houthi- and IRG-controlled areas is worsening, with disparities in inflation and exchange rates further destabilizing the economy. While the outlook for 2025 remains bleak, a lasting peace agreement could drive rapid recovery through external assistance, reconstruction, and economic reforms.
Automotive Industry Trend And Outlook
Overall, the Yemeni vehicle market took a hit in 2024, dropping 7% after 2023 saw the highest figure of the decade.
Looking at full-year data for 2024 brand-wise, the leader Toyota reported 0.7% growth in sales while holding 77.8% market share, followed by MG with a 18% market share, down 27.9%. Lexus gained 23.6%, with a share of 1.4
For what concerns the best selling models, the Toyota Hilux remained on top despite dropping 10.6% while the Toyota Land Cruiser gained 28.4% and ranked 2nd.
Medium-Term Market Trend
The market collapsed in the past years. From the 14,696 vehicles sold in 2013, the industry dropped to only 3,025 in 2016, before showing a little recovery in 2017, mainly in the second half, with 3,938 units. In 2018 improved for the second consecutive year, ending with sales up 37.8% at 5,231 units.
In 2019, the market started improving at an outstanding pace. Indeed, the Full-year ended with registrations at 8,483, booming 62.2%.
Due to the COVID-19 pandemic sales fell in 2020. In fact, 5,276 units have been sold, reporting a decline of 37.8% compared to 2019.
The collapse wasn’t due to structural problems in the market, in fact, it boomed 61.2% in 2021, reporting 8,507 new yearly sales. The market stabilized in 2022 with sales dropping merely 2.3% totaling 8,274 light vehicle registrations.
Yemen’s light vehicle market in 2023 grew hugely by 45.9%, totaling 12,085 sales.
