Davanti tyres are to be distributed by FTC Kuwait. The subsidiary of KAICO (Kuwait Automotive Imports Co) currently operates five tyre outlets – soon to be seven. The company has business interests in Saudi Arabia and UAE, and is involved in leasing, parts, tyres and lubricants. The strategic partnership is targeting annual sales in the Gulf country’s tyre market of 100,000 units.
17 years of dumping has amassed a “tyre graveyard” over 42 million vehicle tyres in Kuwait. According to EuroNews.Green, this has resulted in clouds of toxic black smoke when set alight, creating an “immense environmental risk for residents”.
Apollo Tyres is reporting further inroads into the Kuwait market with the opening up of it first branded retail outlet in the country. The Apollo Zone is designed to provide customers with an enhanced retail experience and a better feel for the brand and products on display, including passenger car, 4×4 and light truck tyres. The new Apollo Zone is located in the up-market Canada Dry Street of Kuwait, and is operated by Federal General Trading & Contracting Co.
Kuwait’s high rate of urbanisation and purchasing power will lead to continued opportunities for imported passenger car tyres, a new report on the country’s automotive segment has revealed. With about 95 per cent of the country’s population residing in urban areas, and private car demand rising, imported PCR tyres have led tyre demand, though the TechSci Research report also suggests that commercial vehicle demand could follow increased mining and oil drilling investments.
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. The new car market will be seen to grow as the Iraqi economy makes these gains.
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