Overview of Oman’s Automobile Market in 2021

Automobile sales in Oman increased by 0.2% year-on-year to 72,000 units in 2021. Although sales slightly increased after six years of decline, demand was still at one of the lowest levels of recent years. The introduction of value-added tax and the increase in electricity and water charges in April 2021 are thought to have cooled consumer sentiment. Toyota, the leading automaker in Oman, increased 3.3% to 33,712 units, expanding its market share from 45.3% in the previous year to 46.7%. On the other hand, The market share of Nissan, ranked second, decreased by 29.6% year-on-year to 12,664 units, and its market share fell to 17.5%, down 7.5 points year-on-year.

Oman: Recent Developments

Market Trends

・Vehicle sales in 2021 increased by 0.2% year-on-year to 72,000 units. Although sales avoided a seventh straight year of decline, demand has fallen to the lowest level in recent years, falling 34.4% compared to 2019. - Toyota, the leading automaker in Oman, increased sales 3.3% year-on-year to 33,712 units. Its market share went up from 45.3% in the previous year to 46.7%. Nissan, which ranked second, fell 29.6% year-on-year to 12,664 units, and its market share shrank to 17.5%, down 7.5 points year-on-year. Fourth-placed MG sold 3,594 units, up 2.1 times year-on-year, up from sixth place in the previous year. It is only 53 units behind Hyundai which ranked 3rd place with 3,647 units. - The Nissan Sunny maintained the top position with 10,920 units, up 16.7% year-on-year, but the gap with second-place Toyota Hilux (10,717 units, up 47.3% year-on-year) was less than 200 units.

Industry Trends

・In February 2022, Oman's first automaker Mays Motors unveiled the iE1, a two-seater BEV. - The price of the model is 25,000 OMR. Initial production is planned to be 300 units, of which 100 units have already been reserved. Production is scheduled to start at the Barka plant at the end of 2023, with plans to produce 600 units over the next five years. The iE1 will have a cruising range of 500km. - The Omani government plans to formulate a law on the installation of charging stations by the end of 2022.

Economic Trends

・The GDP growth rate in 2021 was 3.0% year-on-year. The growth forecast for 2022 is 4.3% (IMF, as of Oct. 2022).

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