Market Trends of Qatar Used Car Industry
Rising Adoption of Digital Technologies Will Foster the Growth of the Target Market
- The adoption of advanced technology by tech-savvy young individuals, the emergence of e-commerce marketplaces, and various companies' aggressive strategies to spend on online advertisements are boosting the demand for used cars sold through online platforms. These platforms assist consumers in making informed decisions as end-end information on vehicles is already listed, such as vehicle make, model, kilometers driven, engine capacity, condition, etc.
- Moreover, the optimal internet penetration rate and a high urban population in Qatar contribute to developing an efficient ecosystem wherein vehicle owners can reach out to buyers from different parts of a region and initiate a smooth online sales process without any need to visit a physical location.
- The number of Internet users in Qatar at the beginning of 2023 reached about 2.68 million, and the Internet penetration rate reached 99 percent. Further, it was also estimated that 96.8 percent of the total population were active social media users, and about 2.56 million of them were aged 18 years and over who possessed the financial capability to purchase a used car during the same review period.
- Qatar boasts one of the highest urbanization rates in the GCC region, with 99% of its overall population residing in urban areas as of 2022. These consumers are highly tech-savvy, and most of them have the financial capability to make an informed decision to purchase a vehicle for their mobility. Owing to these factors, the online used car market in Qatar is expected to showcase positive growth in the coming years.
- Further, the high expatriate population in Qatar, which stood at 88.5% at the beginning of 2023, also assists the growth of the used car market in the country as these consumers prefer availing lower-priced used vehicles over expensive brand-new models for their shorter stay in the country mainly for better employment and financial opportunity.
- To gain a competitive advantage in the lucrative online used car market, various players from the GCC region, such as the United Arab Emirates (UAE) and Saudi Arabia, are actively engaging in integrating the cross-border sales opportunity in Qatar with a high focus on marketing. With the increasing internet penetration and usage of online classified platforms for making purchasing decisions, consumers can buy second-hand cars from their neighboring countries, which helps them get a better price for used car models. Although the prospect for both the new and used car industry in Qatar is limited due to its low population, Qatari companies also have an opportunity to expand their business presence by providing cross-border sales service to its neighboring GCC countries, which will assist them in enhancing their business performance.
- Further, improved offerings such as an enormous number of photos and videos of the used vehicles being sold through online platforms and easy online instant finance, insurance, and warranty service are expected to fuel the demand for used cars in Qatar in the coming years.
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Used Sports Utility Vehicles (SUVs) to Gain Traction in Qatar Used Car Market
- Based on vehicle type, used sports utility vehicles (SUVs) and multi-purpose vehicles (MPVs) are expected to witness a rapid boom in the coming years, especially due to the growing popularity of SUVs in Qatar. Consumers in Qatar prefer availing luxury vehicles owing to their aesthetics, due to which there exists a strong demand for SUVs in the country. Although the demand for new hatchback and sedan models is also popular among expatriates, with the increasing personal disposable income of consumers, used SUVs are expected to witness a surge in the coming years.
- The price of a new hatchback and sedan model most often matches the price of a used SUV vehicle at online classified platforms, especially after various promotional offers extended to the customers along with financing options. For instance, the price of a used 2013 Nissan Pathfinder SUV was sold at QAR 29,999 (USD 8,239) in August 2023 at one of the online used car classified platforms, Yallamotor.
- Further, it was witnessed that used SUVs with a vehicle age of two to four years were the most favored vehicle type among consumers in Qatar. At the outset of the football World Cup in 2022, there existed a huge demand for used SUVs to rent them to tourism companies specializing in transporting delegations to events and tourist places.
- Coupled with that, new SUV sales in Qatar also witnessed positive growth in recent years, which, in turn, positively impacts the used car market in the long run, as with the growing age of the vehicle, there exists a prospect for new SUVs to be sold in the used car market during the forecast period. In 2022, it was estimated that Toyota Land Cruiser Prado, Nissan Patrol, Lexus LX, and Land Rover Defender were the top-selling new SUV models in Qatar in 2022. As these vehicles tend to age, they will find their potential use case in the used car market during the forecast period. In the coming years, used SUV models of Japanese and European make such as Toyota, Nissan, and Kia, among other areas, are expected to gain significant traction during the forecast period.
