Iraqi Car Market Booms

Global Insight, Inc has announced its forecast findings on the newly-emerging Iraq light vehicle market. According to the Global Insight study, basic light vehicle demand during 2005-2007 should stabilise at estimated 200,000 units, after an immediate post-war surge to 250,000-300,000 units. Since the end of the Iraqi war, used car exports to Iraq have risen very sharply, trending towards the lowest priced cars available from the neighbouring regions of the UAE, Kuwait and Jordan.

Between May and September of this year, it is estimated that 100,000 used cars have been shipped to Iraq, with Kuwait alone reportedly shipping 18,000 used cars to Iraq during this same period. Oil wealth, a free trade environment, external spending and financial support all augur for an Iraq potentially wealthier than some of its neighbours. Global Insight’s macro economic forecast shows GDP rising from 1,000 US dollars per capita in 2003 to close to 3,000 US dollars by 2009.