(Yicai Global) July 11 -- Sales of Chinese brand vehicles in Kuwait are outstripping those from Germany and South Korea and now account for the third-largest share of the market as Chinese auto manufacturers jostle to extend their footprint in the affluent Middle Eastern country.

Chinese marque cars accounted for 16 percent of the Kuwaiti auto market as of April, behind Japan which had 48 percent and the US with 17 percent, according to the latest data. Germany slumped to fourth place with 9 percent and South Korea to fifth with 7 percent.

Kuwait’s low import tax of just 5 percent, its affluent population who frequently upgrade their autos, the harsh desert conditions that make locals more particular about their choice of car not to mention the low petrol prices make this a very attractive market for global vehicle makers.

GAC Motor, MG, Yutong and King Long are among the 22 Chinese car marques to have established themselves in the oil-rich nation in recent years with the support of local agents, Cheng Yongru, Economic & Commercial Counsellor of the Chinese Embassy in Kuwait, told Yicai Global.

Few people had heard of GAC Motor when the group first ventured into the Middle East in 2013, an executive at manufacturer GAC Group's overseas business arm told Yicai Global. So, you can imagine how difficult it was to build brand awareness there.

"GAC was able to gradually gain a foothold in Kuwait through its local partner Mutawa Alkazi,” Omar, chairman of the Kuwaiti car sales group, told Yicai Global. Mutawa Alkazi has many years of auto sales experience and a large customer base. “I also trust GAC's quality,” he added.

GAC retails nine models in Kuwait, from sports utility vehicles to sedans. So far it has sold over 7,000 units in the country and is one of the most well-known Chinese brands there. It has set up two exhibition halls and one 3S store.

Last year the Guangzhou-based carmaker exported 1,358 autos to Kuwait, a jump of 48.2 percent from 2020. This year it is on track to shift 2,000 units with first-half orders surging 69.5 percent year on year to 1,151.

With a population of only 4.2 million people, Kuwait sells around 100,000 autos a year. Although the market is small, the country has a strong regional influence as it borders Saudi Arabia in the south, Iraq in the north and faces Iran across the sea, industry insiders said. This is one of the main reasons why so many international carmakers try to enter the Kuwaiti market.

Editors: Tang Shihua, Kim Taylor