The report titled “Kuwait
Vehicle Leasing Market Outlook to 2023 - By Vehicle Type (SUV/MUV, Sedan,
Pickups and Luxury Segment) and By End Users (Oil & Gas, Government,
Construction, Logistics and Transportation, Telecom and Electrical and Others)” provides a comprehensive analysis of
the long term vehicle leasing market in Kuwait. The report covers market size
of Kuwait long term vehicle leasing market in terms of revenue and fleet size,
segmentation on the basis of end users (Oil & Gas sector, Government
sector, Construction, Logistics and Transportation and others), by regions
(Southern, Central, Northern region), by type of vendor (Vehicle dealer and
Vehicle leaser), by Duration of lease (One year, two years, three years and
four year and above) on the basis of fleet size. The report also covers car
leasing eco-system from demand side and supply side, trends and developments,
regulatory scenario and a case study on ‘Automak’ company and its success
factors and key operation metrics. Competitive landscape of the industry and
comprehensive profile of leading players (Automak, Aayan Auto, Al Sayer, Al
Mulla, Sefeena, KGL, Autolease and others), Market share of major players in
the market, competition success factor have been covered in the report. The
report also cover future outlook by revenue, fleet size and weighted average
pricing of vehicle leasing services
annually, future segmentation by regions and by end user along with vendor type
and analyst recommendations.
Kuwait Long Term Vehicle Leasing Market
During the period 2013-2018,
Kuwait vehicle leasing market grew at a positive growth rate. There were
several factors that influenced the growth such as growth of end user
industries, increase in number of new establishments, focus on non-oil sector
end users and other factors. The growth in non-oil sector/industries and stable
construction projects in the country positively influenced the vehicle leasing market
to a large extent. The industry witnessed overall increase in fleet size owing
to growing competition, increasing demand and increasing market penetration
across various regions in the country. Increasing competition in the market has
raised the quality of services offered by vehicle leasing companies in the
country, which has attracted more number of customers to gradually avail the
services for their mobility needs. The reviving oil prices will act as a
stimulant to the growth of vehicle leasing, as the revival in oil prices would
reverse the cost cutting measures taken by the oil and gas companies in the
years 2014-2016.
Kuwait Long Term Vehicle Leasing Market Segmentation
By Type of Vehicle: As of 2018, the luxury vehicle segment accounted
for the least share in terms of fleet size. These vehicles are expensive and
have a niche market. The SUV/MUV segment contributed about the highest in terms
of revenue, owing to the Kuwait government’s preference for an SUV in their
fleet due to ease in travel while in off roads locations and availability of
different variants such as 4 cylinder, 6 cylinder, 8 cylinder. The Sedan
segment contributed highest share in terms of fleet size and second highest in
terms of the market revenue as of 2018. These vehicles were majorly used for
employee mobility, the sedan is an evergreen segment used by corporate and
individuals, and lastly, the Pickup segment also showed significant growth in
the market. The demand for this segment has been on the rise and these types of
vehicles are designed for cargo transportation which is being used by the logistics
and construction sector in Kuwait.
By
Regions: Kuwait is divided into 3 regions namely
Northern, Central, and Southern. In 2018, Southern region accounted for highest
share in terms of fleet size due to presence of oil and construction
industries. Central region also accounted for a significant share in the total 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.
By
End Users: Oil and Gas have accounted for highest share in
the total fleet demand mainly because the country’s economy depends on oil, and
it is the largest spending sector on vehicle leasing for the purpose of
employee mobility. The government and military sector that includes the
ministries of Kuwait such as ministry of public works, ministry of education
have also increased the demand for vehicle leasing. The construction sector also
constituted a significant share and use vehicles meant for transportation of
employees and cargo. Others include individuals and other industries which
accounted for a small share in the market in terms of fleet in the Kuwait
vehicle leasing market.
By
Type of Vendor: In 2018, the vehicle leasing companies had
captured the majority of the market share due to their willingness and ability
to lease, service, maintain, and repair the vehicles from various brands. The automotive
dealers lag behind the core vehicle leasing companies in terms of fleet size as
of 2018.
By
Duration: 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.
Competition in Kuwait Vehicle Leasing Market
The competition in Kuwait
has intensified 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 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.
Future Outlook of Kuwait Vehicle Leasing Market
Kuwait vehicle leasing
market is projected to increase significantly in the forecasted period, 2018-2023.
The average lease price is expected to decrease in the country with rising
competitive rivalry. The profit margins of the vehicle leasing companies are
expected to decrease over the next 5 years due to companies further engaging in
price war strategy. The SUV/MUV segment will see an increase in their share of
fleet over the forecasted period, 2018-2023 due to the increase in customer
preference owing to benefits such as vehicles functionality for off road
driving, strong built and room for more passengers or cargo. Northern region
will witness high growth rate as the government of Kuwait plans to develop the
region further in terms of infrastructure and economic activities and also
encourage establishment of new businesses and attracting foreign investments in
the region.
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
Keywords:-
Car Leasing Market In Kuwait
Car Leasing Industry In Kuwait
Kuwait Car Leasing Business
Kuwait Car Leasing Market
Analysis
Kuwait Car Leasing Market Growth
Kuwait Car Leasing Companies
Vehicle Leasing Market In Kuwait
Vehicle Leasing Industry In Kuwait
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Companies
Kuwait Vehicle Leasing Market
Analysis
Kuwait Vehicle Leasing Market
Growth
Car Rental Industry Kuwait
Pricing Vehicle Leasing In Kuwait
Vehicle Leasing Industry
Revenue Kuwait
Long Term Car Leasing Market
In Kuwait
Long Term Car Leasing Fleet
Size In Kuwait
Kuwait Vehicle Leasing Market
Size
Major Players In Kuwait Car
Leasing Market
Car Rental/Leasing Companies
In Kuwait
Kuwait Car Rental Leasing
Future Growth
Sefeena Revenue Car Leasing In
Kuwait
Future Kuwait Car Rental/Leasing
Trends In Car Rental/Leasing
Market In Kuwait
For
more information on the research report, refer to below link:-
Related
Reports:-
Contact Us:
Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com
+91-9015378249
Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com
+91-9015378249
