Kuwait Car Rental and Leasing Market Forecast to 2020: Ken Research - PowerPoint PPT Presentation

View by Category
About This Presentation
Title:

Kuwait Car Rental and Leasing Market Forecast to 2020: Ken Research

Description:

Kuwait has one of the best road systems among the Middle East countries with widely available car rental facilities in the country. – PowerPoint PPT presentation

Number of Views:38

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Kuwait Car Rental and Leasing Market Forecast to 2020: Ken Research


1
Kuwait Car Rental and Leasing Market Forecast to
2020, Demand For Car Leasing to Drive Growth Ken
Research
2
How the Kuwait Car Rental and Leasing Market Is
Positioned? Kuwait car rental market showcased a
significant growth in the previous years. In
2015, Kuwait car rental market was valued at USD
million as compared to the revenue in 2010
which was USD million. The growth in the
revenue has been largely due to an inclination in
the expenditure on travel by the people in the
country, primarily caused by rising number of
foreign visitors. In 2014, the country has
witnessed an inclination of in the car rental
market in terms of revenue as compared to 2013.
In 2010, the car rental industry had witnessed
revenue of USD million which had further
enhanced to USD million in 2011 and USD
million in 2012. Investment by government to
support tourism such as development of Kuwait
International Airport to reach a lodging capacity
of 25 million passengers per year is also
providing a boost to tourism and thus directly
impacting the car rental market positively.
3
  • Significant rise in revenues have been witnessed
    for the car rental companies operating in the
    country due to diversification in their business
    opportunities in terms of new rental segments and
    business line. Major multinational car rental
    companies such as Hertz has enhanced their
    business by appointing local companies such as
    Transworld Company as its GSA (General Sales
    Agent) in Kuwait in efforts to increase the
    amount of outbound car rental reservations from
    Kuwait. Over the years, Kuwait car rental market
    has grown at a CAGR of from 2010-2015 reaching
    to USD million in 2015.
  • Moreover, the tourism sector is also impacting
    the revenues of car rental companies directly
    since most of the tourists opt for a car rental
    when they visit Kuwait, this provides them the
    flexibility of enjoying the clean and developed
    road infrastructure in the country with ability
    to stop at various places.
  • Which Segments have driven Kuwait Car Rental and
    Leasing Market?
  •  
  • Most of the off airport car rental is dominated
    by the long term car leasing and hence only a
    limited revenue of chauffeur driven cars is
    obtained through the off airport car rental. On
    the other hand Chauffeur driven car rental market
    has been dominated by the on airport car rental
    since most of the people which arrive at the
    airport opt for the chauffeur driven cars.

4
  • Kuwait has one of the best road systems among the
    Middle East countries with widely available car
    rental facilities in the country. In 2015, around
    of the revenues of the car rental companies
    have been generated through the rental of luxury
    cars that comprises of limousine services along
    with large sized cars such as Ford Lincoln, Lexus
    ES 350 and others. Around of the revenues were
    generated from medium sized cars in the country
    in 2015. Expats and tourist that prefer to rent
    cars for duration of 3 months-6 months usually
    prefer to rent small sized cars such as Hyundai
    Veloster, Mitsubishi Mirage, Nissan Micra and
    others.
  • Kuwait car rental market has been segmented on
    the basis of types of clients (corporate/ work
    expats or retail/ tourists) that prefer to rent
    cars or book cars for their travelling purpose.
    Since Kuwait is home to a large expat population
    from various countries therefore car rental
    companies generate a major portion ( ) of their
    revenues through corporate clients.
  • It has been observed that around 60 of the GDP
    of the country comes from oil and gas sector
    accounting for 95 of Kuwaits exports. These
    companies need rented vehicles (mostly commercial
    or the SUVs) to travel to the work sites and thus
    command of the share in revenues. The
    construction industry is expected to indulge into
    a series of projects, owing to increasing demand
    from the private sector.

5
  • Expansion of the Kuwaits International Airport
    and increased focus on infrastructural projects
    to attain non-oil led growth are some factors
    leading to growth of construction sector in the
    country leading to a revenue share of . Other
    sectors such as trading companies require most of
    the commercial vehicles to move their goods to
    and from ports to other parts in the country and
    thus provide revenues worth of the industry
    revenues.
  • What is the Competition Scenario in Kuwait Car
    Rental and Leasing Market?
  • Competition in the vehicle rental industry is
    primarily based on price, service quality of
    customers, including utilization of booking
    systems and easiness of rental and return,
    accessibility of vehicles, dependability and
    domestic and international distribution. In
    addition to this, competition in the market is
    also influenced by advertising, marketing and
    brand reputation.
  • Most of the Kuwait car rental market is captured
    by local players in the country which command a
    major share in the industry. All Mulla has
    dominated the market for rental cars in Kuwait
    with 25.2 share in the total fleet of the car
    rental industry in the country. Al Sayer and
    Safeena are other major players which commanded a
    fleet size of 14.3 and 8.4 respectively.

6
  • Foreign players such as Sixt, Europcar, Avis and
    others also have their rental stations across the
    country. Apart from all the major players, the
    rest of the Kuwait car rental market is tapped by
    small and independent as well as international
    players.
  • What is the Future Outlook for Kuwait Car Rental
    and Leasing Market?
  • A major part of the population in Kuwait
    comprises of work expatriates that usually prefer
    to rent and change their cars on a frequent basis
    due to the culture of Kuwaiti society that
    encourages people to recurrently change their
    vehicles so they will always be driving a new car
    of the newest model. Therefore, various new car
    rental companies are expected to introduce
    facilities such as operational rent, rent
    promising to buy program and others in order to
    cater to the demand of the car rental companies
    in the country. The market for car rental
    services is expected to enhance in the country
    due to the expansion of construction contracts of
    KNPC (Kuwait National Petroleum Company). The
    company plans to produce gasoline and diesel 90
    kilometers south of the capital. This is further
    expected to augment the work force and car rental
    business in the country since employees would
    need to travel from the city to the work
    locations and the way back.
  • The car rental market in Kuwait is expected to
    reach USD 292.2 million by 2020 in terms of
    revenues and in terms of the fleet size. It is
    also expected that the growth would be led by the
    car leasing market covering more than of the
    market.

7
  • Companies Cited in the ReportCompetitive
    Landscape
  • Companies Covered in the Report List of
    Companies
  • Kuwait Car Rental
    Al-Mullah

  • Al Sayer

  • Sefeena

  • Hertz

  • Sixt

  • Ousol

  • National

  • Payless

  • Budget
  • Key Factors Considered in the Report
  • Comprehensive analysis of the Kuwait Car Rental
    and Leasing Market and its segments
  • Listed major players and their positioning in the
    market

8
  • Identified major industry developments in last
    few years and assess the future growth of the
    industry
  • Government roles to understand the regulatory
    environment in each country
  • Comprehensive analysis of major segments in the
    Car Rental and Leasing Market in Kuwait
  • To know more on coverage, click on the link
    below
  • https//www.kenresearch.com/automotive-transportat
    ion-and-warehousing/automotive-and-automotive-comp
    onents/kuwait-car-rental-leasing-market/42907-100.
    html
  • Contact
  • Ken Research
  • Ankur Gupta, Head Marketing Communications
  • query_at_kenresearch.com
  • 91-124-4230204

9
(No Transcript)
10
(No Transcript)
11
(No Transcript)
About PowerShow.com