Dealers in Qatar Foresee Tough Market Condition This Year
Published On Mar 10, 2016
The year 2015 has marked progress for the commercial vehicle market in many countries. The Middle-East and other regions share India's sudden spurt in the medium and heavy duty segment. However, with falling oil prices and global market turmoil casting a shadow over 2016, CV dealers in Qatar have reserved their vision for the coming year.
“2016 will be a different year. In the days to come, we will know the full extent of the global economic situation, but 2016 will surely not be like 2015,” says Iyad Jaradat, head of Qatar International Automobiles, an appointer dealer for MAN Truck & Bus. The company had done well last year, having secured multiple major orders and having strengthened its customer base. “2015 was a very successful year, as we managed to increase our market share significantly compared to the previous year's numbers and figures,” he comments.
Most of the dealers in the country are beginning to feel the pressure of the spiralling global economy. “It will be tough. Like most of the GCC countries, we have the drop in oil prices which really caused a shrink in the spending,” says Ayman Ahmed, managing director at Jaidah Heavy Equipment, which sells Isuzu commercial vehicles and UD Trucks.
Arun D’souza (general manager at Ibn Ajayan Trading Group, which represents Iveco in Qatar) also agrees that the low oil prices will land a blow on the truck market. “The government is still committed to spend a lot of money on the infrastructure and World Cup projects, because it will be difficult to postpone this. But, of course, like any other country in the GCC it will be looking at cutting expenses, and due to that the demand will be a bit less than last year,” he says.
However, he reserves a sliver of optimism with the current market condition nevertheless. “Compared to all the other GCC countries, Qatar is still better positioned because of the infrastructure projects for 2022, so this will keep pushing the market,” D’souza says.