Qatar Used Car Market Size (2024 - 2029)

Qatar Used Car Market Analysis

The Qatar Used Car Market size is estimated at USD 579.34 million in 2024, and is expected to reach USD 837.54 million by 2029, growing at a CAGR of 7.65% during the forecast period (2024-2029).

Consumers' growing preference towards availing private transportation mediums owing to the increase in personal disposable income and GDP per capita, the emergence of online auto platforms, and increasing new vehicle prices serve as the major determinants for the growth of the used car market in Qatar. In 2022, the GDP per capita in Qatar stood at USD 88,046.3, witnessing an expansion of 7.4% CAGR between 2018 and 2022. Further, the average annual salary in Qatar as of August 2023 is estimated to stand at approximately USD 3,570 per month.

With the increasing financial stability, consumers prefer private transportation mediums to enhance their convenience for personal mobility. However, the spike in new vehicle prices deters some of these customers from purchasing brand-new vehicles, subsequently leading to the surging demand for used cars in Qatar. For instance, new vehicle registrations registered a 15% and 8.2% decline on a yearly and monthly basis, respectively, in February 2023. Further, the registration of new private vehicles stood at 4,286 units in Qatar, which declined 1.5% and 14.1% year-on-year and month-on-month, respectively, in February 2023. Coupled with that, consumers' growing concerns about high inflation, which rose to 5.0% in 2022 compared to 2.3% in 2021, are also acting as a catalyst for the falling demand for used cars in Qatar.

According to the Planning and Statistics Authority (PSA) in Qatar, used vehicles witnessed positive growth in February 2023. The transfer of ownership stood at 32,553 units in February 2023, which grew 7.1% year-on-year but fell 1.8% month-on-month. It constituted 26% of the clearing of vehicle-related processes in the review period. The used car market in Qatar mostly replicates the same trend of the new car market in terms of brands that the citizens prefer. In the used car market, Toyota, Nissan, Ford, Kia, Mercedes, and Volkswagen remained the popular preferences of consumers willing to purchase used cars.

One of the major challenges faced by the used car market is the high interest rate of bank loans and the various promotion offers on Chinese cars that have entered the Qatari market over the past few years, which negatively impacts the demand for used cars. Some of the Chinese brands give warranty of up to seven years with in-house finance options and lower prices compared to auto brands from Europe, Asia, and the US, in addition to the sophisticated options. 

It was estimated that the demand for used cars dropped considerably by 40% in July 2023, post-Ramadan. With the gradual drop in interest rates and various used car platforms offering their used-car financing options, the demand for used cars is expected to surge significantly by the end of 2023. Qatar boasts of possessing one of the highest purchasing powers in the GCC region, which also leads its citizens to avail of luxury vehicles in the market, thereby assisting in expanding the market for used SUVs in the coming years.

The government's aggressive strategy to promote the electrification of vehicle fleets and ban of petrol/diesel cars to promote the reduction in carbon emissions will aid the demand for used cars across Qatar during the forecast period. Consumers who are willing to purchase cheaper alternatives to new-energy vehicles are increasingly adopting the purchase of used vehicles for convenience in mobility. For instance, in April 2023, Qatari authorities announced its plan to convert 35% of its fleet's total cars and 100% of its public transportation buses to electric as part of "The Qatar National Vision 2030" strategy, aiming to promote the reduction in carbon emission. 

Further, in January 2023, Qatar General Electricity and Water Corporation (Kahramaa) announced its plan to set up 600 to 1,000 electric vehicle charging stations by 2025 and 2030 to promote the use of electric vehicles (EVs) across the nation. Even with the aggressive stance of the Qatari government to promote the adoption of EVs, the higher cost of electric vehicles adds to the financial burden of the consumer attributed to its excessive battery cost, thereby, in turn, making consumers opt for used cars in the coming years.

Qatar Used Car Industry Segmentation

A used car/pre-owned vehicle, or a secondhand car, is a vehicle that previously had one or more retail owners. A certified pre-owned (CPO) vehicle, on the other hand, is a pre-owned vehicle that has been extensively inspected (pre-purchase inspection) and expertly reconditioned. The used car market consists of a wide range of companies involved in the purchasing and selling of pre-owned vehicles through online or offline sales channels.

The Qatar used car market is segmented by vehicle type, vendor type, fuel type, and sales channel. By vehicle type, the market is segmented into hatchbacks, sedans, and sports utility vehicles (SUVs)/multi-purpose vehicles (MPVs). By vendor type, the market is segmented into organized and unorganized. By fuel type, the market is segmented into petrol, diesel, electric, and other fuel types (liquefied petroleum gas, compressed natural gas, etc.). By sales channel, the market is segmented into online and offline.

The report offers market size and forecast value (USD) for all the above segments.