Yemen 2014. Vehicles market collapsed

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Yemen Light Vehicle Market
Yemen_gorseli

Yemen Light Vehicle Market collapsed in the 2014 hit by devastating civil war with several dealership closed. Current situation is not improving and the 2015 market is foreseen heavily down. Toyota led in spite of sales fallen over 60%.

Country Outlook

The devastating civil war in Yemen continues to tear the country apart, with Houthi forces acting as the de facto government in the capital, Sana’a, and in other parts of the country. Early this month, Houthi forces advanced into the city of Ataq, thus moving closer to reaching important oil and natural gas pipelines and export terminals.

Neighboring countries have gotten involved in the conflict; a Saudi-led coalition of Arab states began air strikes and other military operations in Yemen in an effort to return the ousted government led by President Abed Rabbo Mansour Hadi to power.

Meanwhile, foreign nationals are being evacuated, international businesses and organizations are closing their doors and relief agencies warn that a humanitarian crisis is already underway in the Middle East’s poorest country.

Market Outlook

According to local sources, during the 2014 the light vehicle market in Yemen collapsed with final registrations of new vehicles at 6.172 units, down a sharp 58.0% from the record volume posted in the previous year.

The automotive sector as many others, has been hit by the expansion of internal crisis and has lost almost all the terrain gained in the previous years. Forecast for current year are negative, with market foreseen down, at least by 20%. However the fall could be higher as actually the purchase of goods in general is limited at food and few others.

Competitive Arena

A real competition is not in place, as the priority for any dealership is to limit the damage from the civil war and many activities are closed. Thanks to the wide range of SUVs and Pick ups, Toyota dominates the market and last year has retailed few units more than 4.000 units falling down by 60.1%. The second there was Hyundai and in the third Suzuki.