How
Kuwait Vehicle Leasing Market is Positioned?
The vehicle leasing
business in Kuwait was started in 1970’s by Al Sayer in a small room of the
Kuwait Sheraton Hotel to cater to the requirements of the people for the need
of transportation, and then by Al Mulla group in 1976.
Over the years, the Kuwait
vehicle leasing market has evolved with changing market/economic
conditions, entry of new players such as Sefeena in 1989, Aayan in 1999, and
Automak and KGL in 2002. Today, the market is highly competitive with
companies competing with each other to increase their market share. The lease
prices of all companies are in line with one another and if a company
introduces any new service, it is swiftly replicated by the rest of the
companies in the market. The market share in terms of fleet and revenue is concentrated
with few major companies such as Automak, Aayan Auto, Al Sayer, Al Mulla, KGL
and Sefeena.
The market size was estimated at USD ~ million in 2013 which grew to
USD ~ million in 2018 at a CAGR of ~%.
The market has not experienced any major deviations, considering the
decrease in oil prices that started in 2014 and the revival of oil prices that
began in 2016. The Kuwait National Development Plan has been the major reason
that the market did not fall. The plan is aimed to develop the country in all
aspects such as economical, social, and infrastructural. That required massive
spending for construction and expansion. This plan acted as a catalyst for
growth in the vehicle leasing market.
Kuwait Vehicle Leasing Market
Segmentation
By Vendor Type
This segmentation focuses on share of market on the basis of fleet
size by companies whose primary operations are from vehicle leasing and vehicle
selling. As of 2018, the vehicle leasing companies had captured the majority of
the market share of about ~% due to their willingness and ability to lease,
service, maintain, and repair the vehicles from various brands. The vehicle
dealing companies have a market share of ~% in terms of fleet as of 2018.
By End User
Oil and Gas have accounted for about ~% of the fleet demand mainly
because the country’s economy depends on oil, and it is the largest sector in
the country which spends a lot on vehicle leasing for the purpose of employee
mobility. The government and military sector that included the ministries of
Kuwait such as ministry of public works, ministry of education, accounted for ~%
of the overall market in terms of fleet as of 2018. The construction sector
constituted for about ~% of the demand and used vehicles meant for
transportation of employees and cargo.
By Geographical Regions
Kuwait is divided into 3 regions namely Northern, Central, and
Southern. In 2018, Southern region accounted for about ~% in terms of fleet
size due to presence of oil and construction industries. Central region accounted
for about ~% of the fleet size owing to presence of various branches,
headquarters of companies in the region, and as well as presence of residential
areas in the region, and the remaining ~% of the fleet was accounted in
Northern region.
By Duration
As of 2018, the vehicles in Kuwait are leased for different periods
such as, for one year lease which contributed around ~% in the overall market
in terms of fleet size, two year lease which contributed ~% share in the
market. The lease prices as of 2018 were considerably higher for one year and
two year lease period as compared to a three year lease, hence their share in
the market is low. Three year lease duration has been the most popular as the
lease prices are low and the vehicle leasing companies also prefers to lease
vehicles for this duration, as it is difficult to sell the vehicle after it has
been in use for 4 years or longer.
Competitive
Landscape in Kuwait Vehicle Leasing Market
The competition in Kuwait has grown over the years, with new vehicle
leasing companies entering the market and with the increase in price
transparency in the industry, the lease/contract prices of companies have
decreased causing the profit margins to decrease as well. Furthermore, the
competition landscape has changed from the time when two companies namely
Al-Sayer, (an exclusive dealer of Toyota) and Al Mulla had the majority of the
market share. Additionally, with the emergence of companies such as Automak,
Autolease (KAICO), and Aayan Auto, the competition evolved from price war
strategy (that was once employed by various companies in order to gain market
share by providing vehicles at a lower lease installment) to being competitive
pricing strategy with core focus on consumer satisfaction by providing value
added services. Besides the price factor, consumers are giving utmost
importance to services such as vehicle portfolio/variants, routine service and
maintenance facility of the vehicle, road side assistance, comprehensive
insurance, and replacement vehicle, if necessary. Another factor that consumers
look upon, is how streamlined the process of leasing is. The delivery time of
the vehicle has to be decreased to minimum and reduction in the number of
required documents would also increase the customer satisfaction.
Key Segments Covered
By Type of Fleet:-
SUV/MUV
Sedan
Luxury Segment
Pickups
By End User Sectors:-
Oil and Gas
Government
Construction
Logistics and Transportation
Others (FMCG, ITES, Telecom, Financial Institutions, Healthcare,
Individuals and related industries)
By Type of Vendors:-
Vehicle Dealer
Vehicle Leaser
By Type of Regions:-
Southern Region
Northern Region
Central Region
Key Target Audience:-
Vehicle Leasing Companies
Vehicle Dealers
Car Rental Companies
Government Bodies
Industry Associations
Venture Capitalist/Investors
Time Period Captured in the
Report:-
2013-2018 – Historical Period
2018-2023 – Future Forecast
Companies Covered:-
Automak, Aayan Auto, Al Sayer, Al Mulla, Sefeena, KGL, Autolease,
Rasameel Autolease, Hertz, Apatchi Osoulhouse, Apatchi, Autolease, Mutawa
Alkazi Company, Automall Vehicle Rental, Value Plus, Mustafa Karam Co and Others.
For more information on the
research report, refer to below link:-
Related Reports:-
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