Kuwait Vehicle Leasing Market is Estimated to Grow at a Positive CAGR of 11% : Ken Research

Millennials Preferring Leasing Vehicles: The Kuwait Car Leasing Market has witnessed that almost half of the people in the country specially millennials aging between 20 – 40 years prefer to change their vehicle in every few years so to drive a newer model. Hence, they prefer to take a vehicle on lease. Once the lease is complete, they take a new vehicle on lease. Furthermore, with the emergence of new big players in the market like the Automak, Aayan Auto etc, a variety of option is available for the people to choose from at a high discounted price making leasing an attractive option will lead to the growth of leasing vehicle in Kuwait.

Increased inflow of Expatriates: The inflow of expatriates has rose continuously over the years, and now, the number of expats in the country is more than two times the population of locals, which usually prefer to lease a car and change their cars on a frequent basis due to the culture of Kuwaiti society which encourages people to recurrently change their vehicles so they will always be driving a new car of the newest model which leas to the rise in the demand for the leasing vehicles.

Advantages of Vehicle Leasing: Kuwait is one of the most promising and fastest growing automobile markets in the region mainly because of the lower monthly payments compared to buying a new vehicle, low cash requirement at drive off as lease car requires often little to nothing as down payment, lease vehicle also has a lower repair cost as people use them only for short period of time and most of the repair cost is covered by the manufacturers (bumper to bumper warranty), leasing the vehicle also gave an option to the people of trying out a variety of cars in every few years with the minimal maintenance cost and the procedure for leasing a vehicle is also easy and fast taking only a day.

Increase in demand for SUV and Pickups: The vehicle leasing market in Kuwait has experienced an increase in demand for SUVs and Pickups over the past 5 years.

The demand for SUVs is rising mainly due to their functionality and road capabilities. Furthermore, the infrastructure development activities in Kuwait, which needs transportation of cargo has also increased the demand of Pickups vehicles which have powerful engines to transport heavy cargo.

Analysts at Ken Research in their latest publication “Kuwait Vehicle Leasing Industry Outlook to 2026F- Driven byburgeoning youth population, government projects and innovative products in the market” by Ken Research observed that Kuwait Vehicle Leasing market is in the growing phase. The Preference of the millennials, Increased Inflow of Expatriates, Lower buying and maintenance cost and increase in demand for SUV and pickups , are some of the factors that will contributed to the Kuwait Vehicle Leasing Market growth over the period of 2021-2026F with a growth rate of CAGR ~11%.