ABU DHABI: The number of passenger cars in use in the GCC region is expected to grow at 5 percent annually from an estimated 10.3 million in 2015 to 13.2 million in 2020, according to Alpen Capital.
Its report said new passenger car sales are projected at 1.4 million in 2020, compared to 1.2 million in 2015. Although new sales declined in 2016 and will be under pressure in 2017, Alpen said it expects to see steady growth starting 2018 as the economic environment stabilises and creates pent-up demand.
The anticipated growth is slower compared to that during last five years as consumers tighten discretionary spending and delay buying new cars, the report said.
It added that Saudi Arabia, the UAE, and Kuwait collectively are expected to continue holding more than 75 percent of the region’s passenger car fleet in 2020.
