Iraq Autos Report Q4 2016

Iraq Autos Report Q4 2016

Published: August 2016
Publisher: BMI Research
Product ref: 262013
Pages: 26
Format: PDF
Delivery: Immediate download

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BMI View: Weak private consumption levels in 2016 will keep passenger vehicle sales well below the peak level of 140,000 units in 2010. The dampened investor sentiment due to the unstable security situation, coupled with the inability of government to fund infrastructure expansion due to declining oil prices, will limit commercial vehicle sales and keep total vehicle sales under pressure to 2020.

Key Views
• We expect a return to positive sales growth in 2016, although this will be a relatively small increase of 2.4% driven by base effects.
• Total vehicle sales will remain well below its peak level of 140,612 units in 2010, growing to some 72,000 units in 2020.
• The companies that are best placed to deal with the current negative situation are Iranian carmakers, such as IKCO and SAIPA, which have the benefit of close proximity to the market without border issues.

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By market: Iraq (in Asia)

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