This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 8/15/2019

Overview
The automotive industry continued to experience a slowdown in 2018 as the ongoing trade embargo held back consumers and businesses from purchasing new vehicles. Given the country’s extensive infrastructure projects in preparation for the upcoming 2022 FIFA World Cup and North Field LNG expansion, 2019 is forecasted to be more robust for both commercial and passenger vehicles.

Despite Qatar’s 6% decline in 2018 new vehicle sales, Asian brands dominated the market with the following market share: Toyota (33.1%), Nissan (15%), Mitsubishi (8.4%), Kia (7.1%), Lexus (6.3%) Hyundai (3.1%) and Honda (3.2%).  American brands follow with an approximate market share of 13% split among Chevrolet, GMC, Cadillac, and Ford as the most popular American brands. The luxury car market appears to still be growing while electric vehicles (EVs) are still rarely seen in the country and EV charging stations remain limited.  

Over the past few years, Qatar has been progressively upgrading public transportation and making it more accessible to commuters.  There is an increase in the number of buses and private car services that cater to various routes and locations.  In May 2019, Qatar Rail opened its first metro line with other lines to follow in 2019-2020.

It is expected that demand for spare parts will continue to grow in the next few years as people look to repair, modify, or upgrade their vehicles.  High demand for used spare parts such as brake pads, transmission controls, AC functions, coolant, wipes, and belts continue to prevail in 2019 because of the overall economic cycle. Aftermarket parts manufactured in the United States for European models are an opportunity for U.S. suppliers. The demand for spare parts, car care products, and accessories has likewise increased as the number of used vehicles grows every year.   Counterfeit parts remain a concern in Qatar.

Qatar does not have domestic auto production, but it has automotive investments in several countries, including bus production in Oman and vehicle production in Turkey.  The Qatar Investment Authority also owns a 17% stake in German carmaker, Volkswagen.
 
Sub-Sector Best Prospects

  • Sports utility vehicles
  • Trucks, vans and buses
  • All-Terrain vehicles (ATV), utility vehicles (UTVs)
  • Specialized trucks and vehicles
  • Car care products
  • Aftermarket parts, accessories, and spare parts
Opportunities
  • Tenders published by the different governmental institutions
  • Market penetration through appointment of distributors

Web Resources
Contact the Commercial Section of the U.S. Embassy
 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.