The used car market in Bahrain shows considerable potential, characterized by strong demand and favorable policies.
Market Scale
Bahrain’s vehicle ownership rate is approximately 430 cars per 1,000 people.
The automotive market relies heavily on imports, with car sales reaching 24,700 units from January to October 2023 (a 17.7% YoY increase).
The used car market is expanding, indicating significant growth opportunities.
Demand & Preferences
Popular models include the Toyota Corolla, Mercedes E-Class, and Toyota Camry (primarily Japanese and German brands).
Growing interest in Chinese used cars due to increased brand promotion by Chinese automakers.
Import Policies
Only left-hand drive vehicles are permitted.
Vehicle age limit for imports was extended to up to 10 years (2023 parliamentary decision), creating opportunities for older used cars.
Importers must:
Secure valid insurance.
Obtain temporary licenses via the employer’s HR department using a Central Population Registry (CPR) card.
Tax Policy
A 5% import tariff is levied on the CIF value of used cars.
Relatively low overall tariffs reduce import costs and enhance market competitiveness.
Competitive Landscape
Japanese, German, and Korean brands dominate the market.
Chinese brands hold a smaller but rising market share (e.g., Chery emerged as Bahrain’s top-selling Chinese brand in 2022).
Market Outlook
Steady economic growth and rising household incomes will drive sustained demand.
High new car prices make cost-effective used cars attractive; Chinese models gain traction due to competitive pricing and feature-rich offerings.
Personal Projections:
Market Expansion: Annual growth of ~10% expected in coming years.
Structural Upgrade: Rising quality demands will boost mid-to-high-end used car segments.
Growth in New Energy Vehicles: Improved charging infrastructure and eco-awareness will increase demand for used EVs.
Diverse Sales Channels: Online platforms will enhance transaction efficiency and market vitality.
Post time : Aug-09 16:35
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