Consumer durables is a cataloguing of consumer goods that are not essential to be bought very often as they are fashioned in a way so as to last for an extended period of time. Profits in the consumer durables sector were most profoundly…
BMI View: This quarter we maintain our negative near-term view on the Bahraini autos sector. We
continue to target a 23.7% fall in sales over 2016, although luxury brands will outperform.
? The commercial vehicle segment should outperform over 2016, as heavy vehicle demand remains strong
against the backdrop of ongoing robust levels of construction activity.
? We continue to believe the planned introduction of VAT in 2018 may prompt consumers to buy greater
numbers of new passenger cars in 2017 before the tax is implemented.
? Our view that Bahrain will retain positive demand for luxury cars, despite the wider market slowdown,
has been borne out by the relatively strong performance of luxury brands over 4M16.