Future of Leading Players in Bahrain Car Finance Market

Growth in Automotive Market: Bahrain’s low import and fuel costs, conducive tax regime and high disposable incomes have also helped strengthen the automobile sector and encourage global giants like Toyota, Nissan, Mitsubishi, etc. to set up shop here and manufacture in the country. The government has also been encouraging research and development with regards to autonomous or driverless vehicles.

Chinese Domination: The demand for Chinese vehicles, especially cars is ever increasing Bahrain. The imports reached a total of $ 48 Million in 2021 & is expected to increase. The high demand can be reasoned with two factors, the innovative designs & techniques & an ever increasing confidence of local consumers in Chinese vehicles. Moreover, it can be said that people want to purchase Chinese cars because they are more reliable, with distinctive features & competitive prices. According to the country’s foreign trade statistics, Chinese motor vehicle imports in 2021 totaled 17,955,457 Bahrain dinars.

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Online preference: As the global trend is tilted towards going digital, a wide range of online aggregators in Bahrain are also following the lead. These platforms collaborate with Banks, Captives, NBFCs, Fintech lenders and other peer-to-peer lending platforms to provide multiple financing options that range from personalized interest rates and variable terms to completely new ownership models such as shared leasing and vehicle subscriptions.

High income better purchases: With the overall increase in the income of the entire population, individuals are leaning towards better deals. Although a major portion of the population still prefers affordable cars, there has been a shift towards buying more luxury cars. This is expected to rise in the coming years due to the introduction of electric cars & other technological innovations taking place & will be beneficial for the auto finance industry in the long run.

Analysts at Ken Research in their latest publication, “Bahrain Car Finance Market Outlook 2027F– Driven by government regulations & technological innovations” by Ken Research observed that Bahrain car Finance Market is in a growth phase & is expected to witness a growth rate of ~% in the upcoming years owing to increasing government initiatives & technological innovations. It is to be noted that the Bahrain Car finance market is consolidated with a few brands occupying almost half of the market with companies competing not only on the basis of product quality and promotion but also on the basis of strategic moves with the aim of capturing a larger market share.

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