Kuwait Vehicle Leasing Market Research Report: Ken Research

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:-

https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/kuwait-vehicle-leasing-market/175021-100.html

Related Reports:-

https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/vietnam-car-rental-market/137557-100.html

https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/thailand-car-rental-market/137098-100.html

https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/indonesia-car-rental-market/136319-100.html

Contact Us:
Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com
+91-9015378249

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s