Overview of Kuwait’s Automobile Market in 2021

In 2021, Kuwait's automobile sales increased by 21.7% year-on-year to 102,000 units. However, it is just around 60% of the peak level of over 150,000 units of 2013-2015. Looking at the top four brands, Toyota increased sales by 4.1% year-on-year to 29,295 units, maintaining its top position. Meanwhile Nissan raised sales 45.1% year- on-year to 11,383 units. Chevrolet ranked third with 7,578 units, up 20.6% year-on-year, and Mitsubishi ranked fourth with 6,981 units, up 32.5% year-on-year, both going up double digits.

Kuwait: Recent Developments

Market Trends

・Automobile sales in 2021 increased by 21.7% year- on-year to 102,000 units, returning to the 100,000-unit scale for the first time in two years. However, sales dropped 7.1% compared to 2019. - Toyota's sales increased by 4.1% year-on-year to 29,295 units, but its market share fell by 4.8 points to 28.8%, falling below 30%. On the other hand, Nissan in second place went up 45.1% year-on-year to 11,383 units, and its market share rose 1.8 points year-on-year to 11.2%. In addition, Chevrolet in third place (7,578 units, up 20.6% year-on-year) and Mitsubishi in fourth place (6,981 units, up 32.5% year-on-year) both outperformed market growth and expanded their shares. - The Toyota Land Cruiser SW sold 6,215 units, down 6.6% year-on-year in 2021, but maintained its top position. The Nissan Sunny rose 2.3 times to 4,906 units, moving up to second place. Along with the Patrol, which increased by 50% year-on-year, it contributed to the growth of the Nissan brand.

Policy Trends

・In October 2021, Kuwait submitted a 7.4% GHG reduction target by 2035 compared to BAU (business- as-usual) as a national reduction target for the Paris Agreement. - Kuwait signed the Paris Agreement in April 2016. ・In August 2021, the Kuwait Port Authority indicated its intention to build an EV City to attract EV manufacturers. - It is part of Kuwait's long-term plan Vision 2035. - Details of the plan are expected to be announced by the end of 2022. Candidate sites have not yet been announced.

Political Trends

・In December 2021, a new cabinet was approved. It was the third cabinet formation in 2021 alone. - The former cabinet was at odds with the parliament and failed to restructure its finances, so it was dissolved.

Economic Trends

・The GDP growth rate in 2021 was 1.3% year-on- year. The growth forecast for 2022 is 8.2% (IMF, as of April 2022).

---