Overview

The automotive sector in Qatar had a very successful year in 2022. Driven by the 2022 FIFA Men’s World Cup, the market experienced significant growth in light vehicles and motorcycles sales, which surpassed pre-pandemic numbers. 2022 also experienced overall growth in new vehicle units of 33 percent, compared to 2021.

The most dynamic segment for growth was motorcycles. With the widespread adoption of food and groceries delivery applications (apps) such as Talabat, Snoonu, and Deliveroo, motorcycles are now commonly seen in the streets of Qatar. Food delivery apps have also positively impacted small cars sales, as the Ministry of Labor, implemented a new regulation to protect motorcycle drivers during the hottest hours of the day at the peak of summer, requiring companies to use cars instead of motorcycles for deliveries. Beyond light vehicles and motorcycles, Qatar’s North Field Expansion project will drive growth in other segments the coming years.

In terms of brand recognition, Asian brands continue to dominate the market. High demand for parts such as brake pads, transmission controls, AC functions, coolant, wipes, and belts will continue to prevail in 2023. American aftermarket parts present an opportunity for U.S. suppliers in this sector, due to the high-quality reputation associated with U.S. products. Given the popularity of SUVs for off-roading and dune bashing in the desert, a growing number of Auto repair shops offer off-road upgrades, and customization solutions to enhance the performance of vehicles in the desert. This offers a niche-opportunity since price sensitivity is less of an issue for this consumer base. The broader spare parts market is quite competitive, with high-quality products from Japan and Korea, and low-cost products from Turkey and China. Demand for spare parts, car care products, and accessories will continue to grow as the number of used vehicles increases in the market. Counterfeit parts remain a concern in Qatar.

Electric vehicle (EV) adoption continues in Qatar. The market continues taking serious steps towards electrification. The country aims to have all of its public and school transportation to be completely eco-friendly by 2030. EVs are spotted more in Qatar now than previously.  The largest car dealers are starting to offer hybrid and electric variants in May 2023, Cadillac presented its all-new Cadillac LYRIQ SUV. Doha continues to be a platform for car manufacturers to showcase their newest models in the Middle East and to the world. In October 2023, Doha hosted the Geneva International Motor Show, the first time the show will be held outside of Geneva.

While Qatar has no domestic auto production, it has automotive investments abroad, including bus production in Oman and vehicle production in Turkey. The Qatar Investment Authority also owns a stake in German carmaker, Volkswagen, and in Quantumscape, a California-based company that develops solid state lithium metal batteries for electric cars.

Sub-Sector Best Prospects

• Electric vehicles
• Car care products
• Aftermarket parts, accessories, and spare parts

Opportunities

• Tenders published by various government institutions.
• Market penetration through partnerships with local distributors
• Local Manufacturing: To support Qatar National Vision 2030, the government seeks successful partnerships that can help develop local manufacturing capabilities and transfer knowledge. Entities such as the Qatar Science & Technology Park (QSTP) and the Qatar Free Zones Authority (QFZA) are instrumental to support this strategy.

Trade Shows

• Geneva International Motor Show Qatar (GIMS) 2023

October 5-14, 2023

Doha Exhibition & Convention Center (DECC), Qatar

Resources

Ministry of Transport of Qatar

Planning and Statistics Authority of Qatar

Contact the Commercial Section of the U.S. Embassy in Qatar.