BMI View: Over the past quarter, we have become increasingly bearish on the short-term outlook for new
vehicle sales. We now forecast a 30% fall in sales over 2016, although luxury brands will outperform.
? Most Kuwaitis are putting off new vehicle purchases at the current time, given continued low oil prices, a
sluggish economy and the likelihood of higher interest rates as we move into 2017.
? This has seen most of the volume carmakers selling in Kuwait see double-digit sales declines over 2016
? Our view that Kuwait will retain strong demand for luxury cars has been borne out by the relatively
strong performance of luxury brands compared to volume marques over 4M16.