Kuwait Used Car Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 1.55 Billion |
| Market Size (2029) | USD 2.26 Billion |
| CAGR (2024 - 2029) | 6.50 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Kuwait Used Car Market Analysis
The Kuwait Used Car Market size is estimated at USD 1.55 billion in 2024, and is expected to reach USD 2.26 billion by 2029, growing at a CAGR of 6.5% during the forecast period (2024-2029).
Over the medium term, factors such as the quality of used cars, the large number of expatriates, and demand for new and luxury cars are expected to stand as primary driving factors of the market.
Due to the increasing digitization and the ability of companies to provide immersive purchase experiences remotely, the used car market is expected to witness significant growth. Furthermore, the rise in the value-added service offering and the variety of finance providers offering credit for used cars will also contribute to the growth of the used car market in the region.
Additional factors driving market expansion include rising disposable income levels, rising consumer demand for luxury automobiles, shorter car ownership durations, expanding import-export, and a growing inclination among two-wheeler owners to upgrade to tiny and compact cars.
The market is attracting significant investment through the online sales channel, which is gradually improving. With rising internet and smartphone penetration, online booking is expected to grow rapidly. A similar scenario is anticipated to take place during the forecast period.
Kuwait Used Car Market Trends
Sport Utility Vehicles are dominating the market
Sports utility vehicles (SUVs) are the leading segment in terms of value due to the added perks of being family cars with off-road capabilities and spacious cabins. SUVs have become increasingly popular among used car buyers in recent years. Consumers are always interested in looking at the current SUV models on the market, while dealers compete to offer new SUVs for this growing market.
The surge in popularity of SUVs among younger consumers appears to be a key factor driving the SUV segment within the domestic market. In this scenario, the availability of SUV models boasting luxurious and sporty aesthetics predominantly caters to the upper echelons of society while still delivering a commendable level of comfort. SUVs provide attractive options for consumers with these considerations in mind. Moreover, even for those on a tighter budget, there are affordable SUV options that convey a robust and contemporary vehicle image. In essence, the SUV and MUV sector delivers exceptional value for money in the context of the middle-class economy.
The most popular models in the SUV section include the Toyota Land Cruiser and the high-end Mercedes Benz S-Class, famous for its superior comfort, style, innovation, and general luxurious appeal. Although there has been mounting interest in spacious, luxurious cars, price-conscious purchasers are equally interested in easy-to-maintain, affordable sedan models like the Toyota Camry, which is known for its resale value and fuel prices.
In light of these developments and instances, it is expected that many operational and marketing changes will occur in the market as companies become more customer-centric, indicating optimistic growth in the SUV segment of the Kuwait used car market.
Therefore, the above-mentioned factors and developments to improve the sales of used cars, especially SUVs, are likely to poise growth positively during the forecast period.
Shift towards Unorganized Vendor to Elevate Used Cars Sales In the country
Consumers in the country were deeply attracted to used cars owing to an increase in their purchasing capabilities and a hike in their average disposable income in recent times. Yet, the organized sector of the used car has been completely consolidated owing to only a few retailers and distributors selling the vehicles of all segments on a larger scale.
The majority of the used market is dominated by unorganized players who operate and function on a very small scale in different provinces. This creates challenges for consumers during the aftermarket services and component suppliers.
The most significant evolution that can be seen in the used car market is unauthorized showrooms that offer a variety of used car brands that are subsidiaries of international car brands.
Because there are more organized players in the used car segment, more dealers have shifted their focus to providing value-added services to compete. While DDSAs (Direct Dealership Sales Agents) are quite common in providing such services, several multi-brand dealers have begun to provide additional services such as extended warranty, insurance, after-sales services, paperwork assistance, and so on, to become a 'one-stop' destination for used car buyers.
Many multi-brand and independent dealerships are expected to increase their digital presence to tap into the online used car market. Some dealerships are investing in their own websites and social media pages in addition to listing used car inventory online through online portals. Used car platforms are likely to focus on developing a transactional marketplace to enable 100% online end-to-end transactions from the comfort of one's own home, eliminating the need to visit showrooms.
Additionally, these dealers are also offering unorganized car services to their customers, which is another reason for this segment's growth. Unorganized service centers are 10-20% less expensive than authorized car service centers, which is the primary reason why consumers prefer to use unorganized dealers when purchasing a car in the post-warranty period.
Kuwait Used Car Industry Overview
Several key players, such as Alsayer Group Holding, YallaMotor.com, Alghanim & Sons Automotive, Dubizzle Group, Al Babtain Group, and others, dominate Kuwait's used car market. The rapid expansion of online sales channels across the country is likely to witness major growth in the coming years.
For instance, in March 2022, Ali Alghanim & Sons, one of the leading car dealers in Kuwait, announced the sale of a 45 percent stake in the listing.
Kuwait Used Car Market Leaders
ALSAYER Group Holding.
YallaMotor.com
Alghanim & Sons Automotive
Dubizzle Group
AL BABTAIN GROUP
*Disclaimer: Major Players sorted in no particular order
Kuwait Used Car Market News
- August 2023: Lynk & Co inaugurated the inaugural Lynk & Co Space in the country. This innovative service enhances the car-buying experience, providing Kuwaiti customers with a distinctive opportunity to explore the brand's outstanding vehicle lineup. Lynk & Co. is a joint venture between Geely Auto and Volvo Cars.
- March 2023: Kuwait Finance House introduced the Apply and Win rewards campaign for auto finance clients. This initiative is available to both new and used car buyers, facilitating their car financing needs.
Kuwait Used Car Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Online Sales Channel Witnessed Significant Market Growth
4.2 Market Restraints
4.2.1 Trust And Transparency In Used Car Remained A Key Challenge For Consumers
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size in Value - USD)
5.1 Vehicle Type
5.1.1 Hatchback
5.1.2 Sedan
5.1.3 Sport Utility Vehicles (SUVs)
5.1.4 Multi-Purpose Vehicles (MUVs)
5.2 Vendor Type
5.2.1 Organized
5.2.2 Unorganized
5.3 Fuel Type
5.3.1 Gasoline
5.3.2 Diesel
5.3.3 Electric
5.3.4 Other Fuel Types
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 ALSAYER Group Holding.
6.2.2 YallaMotor.com
6.2.3 Alghanim & Sons Automotive
6.2.4 Dubizzle Group
6.2.5 AL BABTAIN GROUP
6.2.6 Weelz
6.2.7 AlTayer Motors
6.2.8 Motorgy Limited
6.2.9 Al-Futtaim Group
6.2.10 Al Mulla Group
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Kuwait Used Car Industry Segmentation
A used car is a pre-owned vehicle that has previously had one or more retail owners. These cars are sold through a variety of outlets through independent dealers, online sales channels, and others.
The Kuwait used car market is segmented into vehicle type, vendor type, and fuel type. Based on the vehicle type, the market is segmented into hatchbacks, sedans, sports utility vehicles, and multi-purpose vehicles. Based on the vendor type, the market is segmented into organized and unorganized. Based on the fuel type, the market is segmented into gasoline, diesel, electric, and others.
For each segment, the market sizing and forecasts have been done based on the value (USD).
| Vehicle Type | |
| Hatchback | |
| Sedan | |
| Sport Utility Vehicles (SUVs) | |
| Multi-Purpose Vehicles (MUVs) |
| Vendor Type | |
| Organized | |
| Unorganized |
| Fuel Type | |
| Gasoline | |
| Diesel | |
| Electric | |
| Other Fuel Types |
Kuwait Used Car Market Research Faqs
How big is the Kuwait Used Car Market?
The Kuwait Used Car Market size is expected to reach USD 1.55 billion in 2024 and grow at a CAGR of 6.5% to reach USD 2.26 billion by 2029.
What is the current Kuwait Used Car Market size?
In 2024, the Kuwait Used Car Market size is expected to reach USD 1.55 billion.
Who are the key players in Kuwait Used Car Market?
ALSAYER Group Holding., YallaMotor.com, Alghanim & Sons Automotive, Dubizzle Group and AL BABTAIN GROUP are the major companies operating in the Kuwait Used Car Market.
What years does this Kuwait Used Car Market cover, and what was the market size in 2023?
In 2023, the Kuwait Used Car Market size was estimated at USD 1.45 billion. The report covers the Kuwait Used Car Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Kuwait Used Car Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Kuwait Used Car Industry Report
Statistics for the 2024 Kuwait Used Car market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Kuwait Used Car analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
