Market Size of Qatar Used Car Industry
![Qatar Used Car Market Summary](https://s3.mordorintelligence.com/qatar-used-car-market/1707286175325_qatar-used-car-market_Market_Summary.webp)
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Market Size (2024) | USD 579.34 Million |
Market Size (2029) | USD 837.54 Million |
CAGR (2024 - 2029) | 7.65 % |
Market Concentration | Medium |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
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Qatar Used Car Market Analysis
The Qatar Used Car Market size is estimated at USD 579.34 million in 2024, and is expected to reach USD 837.54 million by 2029, growing at a CAGR of 7.65% during the forecast period (2024-2029).
Consumers' growing preference towards availing private transportation mediums owing to the increase in personal disposable income and GDP per capita, the emergence of online auto platforms, and increasing new vehicle prices serve as the major determinants for the growth of the used car market in Qatar. In 2022, the GDP per capita in Qatar stood at USD 88,046.3, witnessing an expansion of 7.4% CAGR between 2018 and 2022. Further, the average annual salary in Qatar as of August 2023 is estimated to stand at approximately USD 3,570 per month.
With the increasing financial stability, consumers prefer private transportation mediums to enhance their convenience for personal mobility. However, the spike in new vehicle prices deters some of these customers from purchasing brand-new vehicles, subsequently leading to the surging demand for used cars in Qatar. For instance, new vehicle registrations registered a 15% and 8.2% decline on a yearly and monthly basis, respectively, in February 2023. Further, the registration of new private vehicles stood at 4,286 units in Qatar, which declined 1.5% and 14.1% year-on-year and month-on-month, respectively, in February 2023. Coupled with that, consumers' growing concerns about high inflation, which rose to 5.0% in 2022 compared to 2.3% in 2021, are also acting as a catalyst for the falling demand for used cars in Qatar.
According to the Planning and Statistics Authority (PSA) in Qatar, used vehicles witnessed positive growth in February 2023. The transfer of ownership stood at 32,553 units in February 2023, which grew 7.1% year-on-year but fell 1.8% month-on-month. It constituted 26% of the clearing of vehicle-related processes in the review period. The used car market in Qatar mostly replicates the same trend of the new car market in terms of brands that the citizens prefer. In the used car market, Toyota, Nissan, Ford, Kia, Mercedes, and Volkswagen remained the popular preferences of consumers willing to purchase used cars.
One of the major challenges faced by the used car market is the high interest rate of bank loans and the various promotion offers on Chinese cars that have entered the Qatari market over the past few years, which negatively impacts the demand for used cars. Some of the Chinese brands give warranty of up to seven years with in-house finance options and lower prices compared to auto brands from Europe, Asia, and the US, in addition to the sophisticated options.
It was estimated that the demand for used cars dropped considerably by 40% in July 2023, post-Ramadan. With the gradual drop in interest rates and various used car platforms offering their used-car financing options, the demand for used cars is expected to surge significantly by the end of 2023. Qatar boasts of possessing one of the highest purchasing powers in the GCC region, which also leads its citizens to avail of luxury vehicles in the market, thereby assisting in expanding the market for used SUVs in the coming years.
The government's aggressive strategy to promote the electrification of vehicle fleets and ban of petrol/diesel cars to promote the reduction in carbon emissions will aid the demand for used cars across Qatar during the forecast period. Consumers who are willing to purchase cheaper alternatives to new-energy vehicles are increasingly adopting the purchase of used vehicles for convenience in mobility. For instance, in April 2023, Qatari authorities announced its plan to convert 35% of its fleet's total cars and 100% of its public transportation buses to electric as part of "The Qatar National Vision 2030" strategy, aiming to promote the reduction in carbon emission.
Further, in January 2023, Qatar General Electricity and Water Corporation (Kahramaa) announced its plan to set up 600 to 1,000 electric vehicle charging stations by 2025 and 2030 to promote the use of electric vehicles (EVs) across the nation. Even with the aggressive stance of the Qatari government to promote the adoption of EVs, the higher cost of electric vehicles adds to the financial burden of the consumer attributed to its excessive battery cost, thereby, in turn, making consumers opt for used cars in the coming years.
Qatar Used Car Industry Segmentation
A used car/pre-owned vehicle, or a secondhand car, is a vehicle that previously had one or more retail owners. A certified pre-owned (CPO) vehicle, on the other hand, is a pre-owned vehicle that has been extensively inspected (pre-purchase inspection) and expertly reconditioned. The used car market consists of a wide range of companies involved in the purchasing and selling of pre-owned vehicles through online or offline sales channels.
The Qatar used car market is segmented by vehicle type, vendor type, fuel type, and sales channel. By vehicle type, the market is segmented into hatchbacks, sedans, and sports utility vehicles (SUVs)/multi-purpose vehicles (MPVs). By vendor type, the market is segmented into organized and unorganized. By fuel type, the market is segmented into petrol, diesel, electric, and other fuel types (liquefied petroleum gas, compressed natural gas, etc.). By sales channel, the market is segmented into online and offline.
The report offers market size and forecast value (USD) for all the above segments.
By Vehicle Type | |
Hatchbacks | |
Sedans | |
Sports Utility Vehicles (SUVs)/Multi-Purpose Vehicles (MPVs) |
By Vendor Type | |
Organized | |
Unorganized |
By Fuel Type | |
Petrol | |
Diesel | |
Electric | |
Other Fuel Types (LPG, CNG, etc.) |
By Sales Channel | |
Online | |
Offline |
Qatar Used Car Market Size Summary
The Qatar used car market is poised for significant growth, driven by factors such as increasing personal disposable income, the rise of online auto platforms, and the high cost of new vehicles. As consumers in Qatar experience greater financial stability, there is a growing preference for private transportation, which is further fueled by concerns over inflation and the high interest rates associated with bank loans. The market is characterized by a strong demand for popular brands like Toyota, Nissan, Ford, Kia, Mercedes, and Volkswagen, with used sports utility vehicles (SUVs) and multi-purpose vehicles (MPVs) expected to see rapid growth. The government's push towards electrification and the introduction of electric vehicle charging infrastructure are also influencing consumer behavior, as buyers seek more affordable alternatives to new-energy vehicles.
The emergence of e-commerce marketplaces and the high internet penetration rate in Qatar are transforming the used car market, enabling consumers to make informed purchasing decisions online. The high expatriate population further supports the demand for used vehicles, as these consumers often prefer lower-priced options. The market is competitive, with various players like Qmotor, Yallamotor, and Automall Qatar vying for market share through strategic partnerships and value-added services such as financing and warranties. Despite challenges such as high interest rates and competition from Chinese car brands, the used car market in Qatar is expected to expand, leveraging cross-border sales opportunities and the growing popularity of online platforms.
Qatar Used Car Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.1.1 Rising Adoption of Digital Technologies
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1.1.2 Others
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1.2 Market Restraints
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1.2.1 Promotion Offers on New Car Models of Chinese Make to Hamper the Demand for Used Cars
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1.3 Industry Attractiveness - Porter's Five Forces Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION (Market Size in Value - USD)
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2.1 By Vehicle Type
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2.1.1 Hatchbacks
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2.1.2 Sedans
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2.1.3 Sports Utility Vehicles (SUVs)/Multi-Purpose Vehicles (MPVs)
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2.2 By Vendor Type
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2.2.1 Organized
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2.2.2 Unorganized
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2.3 By Fuel Type
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2.3.1 Petrol
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2.3.2 Diesel
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2.3.3 Electric
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2.3.4 Other Fuel Types (LPG, CNG, etc.)
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2.4 By Sales Channel
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2.4.1 Online
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2.4.2 Offline
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Qatar Used Car Market Size FAQs
How big is the Qatar Used Car Market?
The Qatar Used Car Market size is expected to reach USD 579.34 million in 2024 and grow at a CAGR of 7.65% to reach USD 837.54 million by 2029.
What is the current Qatar Used Car Market size?
In 2024, the Qatar Used Car Market size is expected to reach USD 579.34 million.