(MENAFN- The Peninsula) By Mohammad Shoeb | The Peninsula
Doha: Qatar's auto market registered positive growth last year, despite the start of Doha Metro services, almost in full swing. The year-on-year sales of private cars witnessed robust growth year-on-year in November 2019, latest official data show.
There was a popular perception that the opening of Doha Metro will eventually have adverse impact on car sales and businesses of taxi and limousine service providers.
The registration of new vehicles in November 2019 stood at 5,690, witnessing an increase of 3.5 percent compared to 5,495 in November 2018.
However, when compared on monthly basis, the sales of new vehicles witnessed a double-digit fall in November 2019, with the total number of new registrations declining by 13.22 percent compared to 6,557 in October 2019, according to data released by the Planning and Statistics Authority.
The month-on-month sales of private cars as well as vehicles registered for private transport, both noticed a significant decline in November 2019.
The sales of private vehicles, including cars and SUVs, in November 2019 stood at 4,184, down by 9.22 percent compared to 4,609 in the previous month. When analysed on yearly basis, the sales of private vehicles registered a robust growth of nearly 14 percent against 3,674 in November 2018.
Analysts suggest that the monthly fall in the sales of private vehicles could be, to some extent, attributed to the opening of Doha Metro and the integrated feeder bus services which are becoming increasingly popular mode of transport, especially among the residents. The state-of-the-art Doha Metro has been witnessing unprecedented increase in the number of ridership.
Enquiries with some of the expatriates and daily commuters revealed a mixed reaction about the impact of Doha Metro on car sales in future.
'I had a plan to replace my old car with a new one at the end of 2019 when car dealers usually come out with attractive promotions and offers. But with the full operation of Doha Metro I have postponed the decision, at least temporarily. The expansion in the network of link buses, accessibility to Doha Metro is becoming more convenient. If this new mode of public transportation continues to remain affordable for a longer period of time, I may not replace my old car, said Mohammed Faseeh, a senior engineer, working for a prominent construction firm in Qatar.
He added: 'If a significant number of potential car buyers think this way, it may have some impact in the auto market putting downward pressure on sales of new vehicles as well as the number of cars on the roads in the coming months.
But there are many who did not agree with this argument. They say that a significant number of Doha Metro users constitute housewives, children and school students, who do not drive in Qatar. Doha Metro will have some impact on the businesses of taxi companies and ride hailing service providers, but given Qatar's climatic conditions and other factors, the use of private cars will continue to remain the popular means of transportation.
'Doha Metro is perfect and a wonderful mode of transport. I really enjoy commuting by it. It's affordable, comfortable and convenient. But we cannot go every corner of the country by Doha Metro. The low frequency of link buses in some routes makes it very time consuming, thus I am compelled to take my car, especially when I do not have the luxury of extra time to wait for link buses for up to half-an hour, noted Debashish Bhttachara, a procurement manager at a trading and contracting company.
Qatar's automobile sector had started the year 2019 making a remarkable growth in January 2019 showing its resilience to the impact of global economic challenges and ongoing unjust blockade.
The sales of new vehicles, including private cars, heavy equipment and trailers had witnessed a good growth in the first month of the New Year compared to December 2018.
The monthly sales peaked at 6,690 in October 2019, and the monthly sales volume remained robust throughout the year 2019, hovering between 5,000 and 6,700 units, only with the exception of June and August.
The average sales of new vehicles in these two months (June and August 2019) remained at around 4,000 units.
The sales of new trailers recorded a significant growth in November with the total number of new registrations reaching at 64, witnessing a jump of 28 percent compared to 50 new trailers sold in October 2019.
When compared on year-on-year basis, the sales jumped by 64 percent against 39 units in November 2018. The monthly sales of new trailers had peaked in January 2019 at 69, the highest in the first 11 months of the year.
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