Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Automotive industry in Oman hopes for revival in 2018  Join our daily free Newsletter

MENAFN - Muscat Daily - 10/01/2017
No. of Ratings : 0
Add to Mixx!

(MENAFN - Muscat Daily) Muscat- The automotive industry hopes that a revival in sales by next year will help it shake off the decline it faced in 2016 as government departments and businesses trimmed spending. Automotive dealers expect to see a bit of a slow start to their business this year before things change for the better by 2018. According to the National Centre for Statistics and Information (NCSI), businesses bought fewer new commercial vehicles as part of cost-cutting measures leading to a drop in registration by 21.5 per cent in the January-November period in 2016 compared to the same period in 2015.

NCSI reported in its December bulletin, that 18,501 new commercial vehicles were registered in the January-November period in 2016 compared to 23,566 during the same period in 2015. That means 5,065 less vehicles were registered, a decline of 21.5 per cent.

Several companies working in the logistics field confirmed that decline in buying was directly related to finances and market changes. An official from Al Mutahidha Transport Co said, 'Purchasing is directly related to orders. Since business is slow, it's only logical that commercial vehicle sales are down. While some operators are tempted to stretch the life-cycle of existing vehicles, major contracts usually have a clause in them pertaining to the age of the vehicles to be used.'

Gulam Mohammed Ansari, an official from Al Daraii Group, said, 'The oil and gas industry is still a major factor contributing to the economy. While business is down and we didn't add to the fleet last year, we are concentrating on our existing contracts.'

Statistics show there was a drop in almost all types of vehicles registered including rentals(-20.0 per cent), taxis (-17.7 per cent), tractors (-25 per cent), motorbikes (-25.8 per cent) and private (-5.5 per cent).

The only increases were registered in diplomatic (12.2 per cent), driving school (10.4 per cent) and temporary (9.2 per cent) vehicles.

Al Sumri Transport, which uses large buses to transport employees in the oil and gas sector, has actually seen a positive effect. 'More oil and gas companies are relying on them to transport employees on a mass scale, rather than investing in their own individual vehicles,' said its CEO Najma al Harthy.

She said companies were adjusting to the higher petrol prices after government subsidies were removed. 'They need us more, they need more buses,' she said. 'Because of this economy, the fuel price is high, so many people tend to use public buses, especially in the desert, to save.'

She said this is leading companies and their employees not to buy as many of their own smaller vehicles. 'If you have more people using buses, especially going to the interiors, then obviously people will buy less vehicles.'

The marketing manager at the commercial vehicles section at an auto dealer, said, 'When it comes to commercial vehicles, sales will directly depend on economic activities within a country. The 2016 decline was on account of a slowdown in commercial activity. In 2017, the expectation is that sales will remain at par with 2016. No dramatic upswing is expected, but the market will hopefully recover in 2018.'

An official from another automotive dealer said, 'The year 2015 was very good, while 2016 was bad. I think this year things will remain the same. We expect things to improve from 2018. Car rentals businesses are doing okay though.'


Muscat Daily

  MENA News Headlines
 Apr 28 2017 - 10 UAE locals to compete among others for 2 IFBB Pro CardsMENAFN Press
(MENAFN Editorial) EINPresswire.com/ -- 10 UAE locals to compete among others for 2 IFBB Pro Cards Fujairah News; Ten UAE national amateur bodybuilders will compete, among others, for two ...

 Apr 28 2017 - CEO Licensing Authority for RTA Dubai at the Smart Mobility UAE Forum and AwardsMENAFN Press
(MENAFN Editorial) EINPresswire.com/ -- Transportation experts gathered in Dubai last month to discuss smart mobility and highlight the needs in order to achieve Smart City KPIs at the Smart Mobility ...

 Apr 28 2017 - Introducing Digitize FZC: Digital Marketing ConsultantsMENAFN Press
(MENAFN Editorial) Digital Differentiators for marketing strategization and collaboration. Digitize your day with Digital Differentiators— UnknownRIYADH, SAUDIA ARABIA, KINGDOM OF SAUDI ...

 Apr 28 2017 - ITR's report on study of Global Monarchy gives this years title of 'Most Efficient Monarch' to Bahrain's King HamidMENAFN Press
(MENAFN Editorial) International Transparency Report (ITR) based in Geneva, MANAMA, MANAMA, BAHRAIN, April 19, 2017 /EINPresswire.com/ -- ITR conducted a Survey based on country GDP, Cost of ...

 Apr 28 2017 - Lebanese Minister of Energy and Water to Lead Speaker Line Up at Lebanon International Oil & Gas Summit 2017MENAFN Press
(MENAFN Editorial) HE Eng. Cesar Abi Khalil will lead speaker programme at LIOG 2017 BEIRUT, LEBANON , April 4, 2017 /EINPresswire.com/ -- Organisers have confirmed that HE Eng. Cesar Abi Khalil, ...

 Apr 28 2017 - Unite with Tomorrowland Dubai Tickets on SALE NOWMENAFN Press
(MENAFN Editorial) Tickets, Hotel Packages and VIP Tables now available at Platinumlist.net for UNITE with Tomorrowland Dubai DUBAI, DUBAI, UNITED ARAB EMIRATES, April 19, 2017 /EINPresswire.com/ ...

 Apr 28 2017 - The New De'Longhi's Multifry Multicooker Extra Chef Plus for your Ramadan CookingMENAFN Press
(MENAFN Editorial) The three new accessories a bowl with paddle, a bowl without paddle, a grill accessory - and the additional Grill function, will allow you be even more creative with your ...

 Apr 29 2017 - 10 WONDERFUL YEARS! Push Up Wonder Jeans are celebrating their 10th anniversary with a campaign starring Sara CarboneroMENAFN Press
(MENAFN Editorial) Ten years ago, after a deep study of the female body, SALSA became a pioneer in the world of denim when it launched the innovative Push Up Wonder jeans, originally a low-waisted ...

 Apr 29 2017 - Bollywood superstar Kareena Kapoor to launch product line at Beautyworld Middle East 2017MENAFN Press
(MENAFN Editorial) Leading beauty and wellness trade showcase poised to set new participation and attendance records Dubai, UAE, April 29, 2017: Indian superstar actress and leading fashion and ...

 Apr 29 2017 - Bourn Hall Fertility Centre Raises Awareness and Support on Fertility IssuesMENAFN Press
(MENAFN Editorial) Partners with UAE's only IVF and Fertility Support Group to eliminate social stigma attached with infertility April 28, 2017, Dubai, UAE: With the aim to provide education, ...





Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  

Middle East North Africa - Financial Network

Main News
News By Industry
News By Country

Search News
Market Indices
Quotes & Charts

Global Indices
Arab Indices


Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks

Saudi Arabia 

Economic Calendar
Financial Glossary

Financial Calculators

RSS Feeds [XML]

Corporate Monitor


Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters

© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help