Oman Automotive Market By Vehicle Type (Two Wheeler, Passenger Car, Commercial Vehicles), By Propulsion Type (ICE & Electric), By Transmission Type (Manual, Automatic), By Region, Competition Forecast & Opportunities 2018- 2028

The Oman Automotive Market is anticipated to register a robust CAGR in the upcoming years due to increasing investment in Oman. It is one of the most promising and rapidly growing vehicle markets, backed by several reasons including manpower availability, R&D activities, location advantage, and government support. With a favorable economic outlook and increased spending power, the country's automotive sales are expected to skyrocket. New companies continue to enter the market, particularly in the low-cost car category, with sales expanding rapidly. Passenger cars and light commercial vehicles are also experiencing a surge in demand.

Introduction

The automobile sector is crucial to a country's socioeconomic success. The growth of any country's automobile sector is commonly used to measure its progress. The position of motor transport in the national economy's infrastructure determines the country's growth forces, the development of the modern economy, and the possibilities for its development. Oman has one of the fastest-growing automotive markets in the Middle East The rising and increasing vehicle sector is one of the significant advancements taking place in the Sultanate of Oman's business environment. Oman has effectively established itself as a global automotive hub. The Oman automotive market consists of vehicles used for personal or public purposes.

Market Drivers

Oman's automobile market is growing along with economic revitalization. The country's GDP recorded an upward trend, boosting the automobile industry. The auto industry is also getting a boost from its OEMs. The OEMs are planning to expand their activities, production bases, and after-sales services in the country. The government also supports the automobile sector as it is a revenue generator for the country. The government has been working on attracting foreign market players to set up their manufacturing plants within the country. The government is also investing in making new roads and highways, which is increasing the demand for vehicles on roads. Furthermore, the government is offering tax incentives to market players, which will increase the involvement of foreign players and, in turn, increase the Oman automotive market. Due to Oman's geographical location, the automotive industry has a positive impact on market growth. Oman has seven commercial ports. Additionally, Oman is located near India, USA, Europe, and China, which leads to a reduction in lead-time and access to raw materials for production and high intensity of import and export, effectively increasing the automobile industry in Oman. Oman's unique regional bilateral ties offer great potential, and with its unrestricted distribution network throughout the Middle East and North, it is ideal for pan-GCC sales not only in terms of selling new vehicles but also auto parts and accessories.

Market Challenges

The challenges faced by the Oman automotive industry include the shortage of raw material supply in the country. Due to the coronavirus outbreak, the supply chain of key automobile components has been disrupted. Additionally, the hampering of import activity has severely impacted the automobile industry. As Oman is an import-driven automobile market, it leads to high vehicle costs, restricting many consumers from buying expensive cars. This barrier can restrict the growth of the auto industry. Furthermore, there is a shortage of skilled labor in the manufacturing sector, which is a limiting factor for the Oman automotive industry. The electric vehicle infrastructure is one of the stumbling blocks in the Oman automotive market. Moreover, the shortage of chips impacts the production of automobiles and auto parts. Additionally, there is a lack of dealerships within the country, which has led to the limited availability of vehicles.

Market Scope

Recent Developments

·         In February 2023, Audi Oman announced that Sayatri has become the leasing and rental company to add electric vehicles to its vehicle portfolio. Zubair's Group Leasing and Rental company has leased the Audi e-Tron to Kempinski Muscat Hotel.

·         In 2023, Shell Oman signed a Memorandum of Understanding (MOU) with the Oman Automobile Association (OAA). This partnership will offer an Electric vehicle charging hub and smart service station.

·         In 2023, MHD Acere launched the JETOUR new automotive brand in the country. MHD Acere also launched the Chelsea Truck Company in 2022.

·         In 2022, the Oman Investment Authority and the National Transport Company of Qatar formed a joint venture to produce buses. These buses are manufactured by Karwa Automotive company. These buses were used in the 2022 World Cup in Qatar.

·         In November 2022, Audi partnered with Evo for the development of Electric vehicle charging stations. They installed more than 50 chargers across Oman in 2022 and plan to install over 200 chargers in 2023.

·         In February 2022, May Motors launched the first electric car, MayiE1, in Oman. The company also announced that around 100 orders have been booked, and production of electric cars will start in 2023.

·         In November 2021, the Karwa Automobile factory produced the first bus in its manufacturing plant in Duqm. The Karwa Automotive Project aims to bring manufacturing to the country. The project's total investment is USD 71 million.

Market opportunities

The Oman Automotive Industry provides opportunities for the automotive sector to engage with new technology and manufacture new parts and components for automobiles. Additionally, the introduction of electric vehicles and their manufacturing within the country has prompted many OEMs to transition to electric mobility. With the development of infrastructure for electric vehicle charging stations, it paves the way for greater integration of electric vehicles within the country, which in turn contributes to overall vehicle growth. The government has also launched programs to reduce carbon emissions. As a result, the government has decided to implement 7,000 electric vehicles in the first phase of the carbon neutrality plan. Furthermore, with increased penetration of electric vehicles, it will serve as a steppingstone for hydrogen-based vehicles.

Market Segmentation

The Oman Automotive Market is segmented by vehicle type, by propulsion type, by transmission type, by region, and competitive landscape. Based on the vehicle type the market is segmented into Two wheeler, Passenger cars and Commercial Vehicles. Based on propulsion type, the market is segmented into Internal Combustion Engine (ICE) and Electric. Based on the transmission the market is segmented into Manual and Automatic.

Company Profiles

Toyota Motor Corporation, Nissan Motor Co. Ltd., Hyundai Motor Company, Tata Motors Ltd., Volkswagen AG, Hino Trucks, MAN Truck & Bus, AB Volvo, Mitsubishi Motor Corporation and MG Motor UK Ltd. are the key players developing advanced technologies to stay competitive in the market and enhancing their product portfolio in the regions to increase their customer outreach.

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Report Scope:

In this report, Oman Automotive Market has been segmented into following categories, in addition to the industry trends which have also been detailed below:

·         Oman Automotive Market, By Vehicle Type:

o   Two-Wheeler

o   Passenger Cars

o   Commercial Vehicles

·         Oman Automotive Market, By Propulsion Type:

o   ICE

o   Electric

·         Oman Automotive Market, By Transmission Type:

o   Manual

o   Automatic

·         Oman Automotive Market, By Region:

o   Muscat

o   Al-Sharqiyah

o   Al-Batinah

o   Dhofar

o   Rest of Oman

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in Oman Automotive Market.

Available Customizations:

With the given market data, TechSci Research offers customizations according to a company’s specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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