Doha: Many nationals and expatriates see the prices of brand new cars in Qatar unjustified and more expensive than other GCC states. The difference in the prices of brand new cars in Qatar and other GCC states sometimes amounts to QR40,000.
The price of a Toyota Land Cruiser costs $78,299 compared to $53,902 in the Emirates and $45,916 in Kuwait. Toyota Corolla in Qatar costs $19,773, $18,511 in Emirates, and $15,924 in Kuwait.
The local price for a Nissan Sunny range between $13,178 and $15,100 compared to $12,795 in the Emirates, said an Arabic daily. Auto agents in contrast refer the hike in auto prices to high fees they pay to meet rent, transportation, storage, and workers salaries.
People in Qatar are forced to buy brand new cars from Saudi Arabia and United Arab Emirates which are less expensive than here. Some local auto traders used to travel to GCC states to buy brand new cars and resell them in Qatar for a lesser rate than the rates showcased by auto agents. Local spare parts prices are also more expensive than neighbouring countries, and traders are forced to import them from Kuwait, Saudi Arabia or Emirates despite the high rates of shipping fees.
On the contrary, used cars prices in Qatar are on the cheap in the Gulf region. Many GCC citizens used to buy spare parts from Qatar due to their low prices. They used to buy local used cars and export them to their countries due to the big difference in prices and the short distances they travel.
Reducing the unjustified prices of brand new cars and offering them with rates similar to neighbouring countries will be in the interest of consumers and more profitable for agents.
The local car market should abide by the world rates to make car prices more affordable for different communities. Used cars attract more people in Qatar and from GCC states due to their low prices, said Ahmed Askar Al Karbi.Car prices in Qatar, which gradually rose in 2009 and 2010 are expected to rise further in 2011 due to the hike in insurance fees and the high shipping rates, said an auto car company official.
"Negotiations are currently being held between auto companies and the Ministry of Business and Trade to reduce prices," he said.
© The Peninsula 2011
