PHOTO
22 September 2015
Muscat: Total vehicle registrations in Oman slumped by 28.6 per cent to 57,063 during the first seven months of 2015, down from 79,911 registrations during the same period last year.
The fall in registration could be attributed to the unwillingness of people to spend on high value products, such as vehicles, in view of the recent drop in oil prices.
As far as vehicle registrations are concerned, a drastic fall was seen in the category of private vehicles and taxis, which dipped by 37.5 per cent and 38.6 per cent, respectively, to 39,071 units and 393 units, according to statistics released by the National Centre for Statistics and Information (NCSI).
"Car loan interest rates are at an all-time low, the youth are getting jobs and projects are going on. So, it is difficult to find any reason, other than weak customer sentiment," said Bikram S. Rishi, chief executive officer of Muscat Finance, which is engaged in auto finance.
Rishi noted that the government's vehicle purchases had increased by 15.2 per cent to 1,400 units and rent-a-car companies' registrations had also surged by 29.9 per cent to 2,504 vehicles in the first seven months of 2015, up from a year ago.
He added that the interest rate for auto finance ranged between 4.5 per cent and 8.5 per cent, depending on whether the vehicle is brand new or used, and what is the tenure of the loan.
Registration for motorbikes also fell by 23.1 per cent to 562 bikes, from 731 motorbikes during the period under review. Oman imports vehicles for domestic sales and for re-exports to regional markets.
The Sultanate's total vehicle registration in 2014 was pegged at 143,034 vehicles, of which 77.89 per cent or 111,406 vehicles were private cars.
Muscat: Total vehicle registrations in Oman slumped by 28.6 per cent to 57,063 during the first seven months of 2015, down from 79,911 registrations during the same period last year.
The fall in registration could be attributed to the unwillingness of people to spend on high value products, such as vehicles, in view of the recent drop in oil prices.
As far as vehicle registrations are concerned, a drastic fall was seen in the category of private vehicles and taxis, which dipped by 37.5 per cent and 38.6 per cent, respectively, to 39,071 units and 393 units, according to statistics released by the National Centre for Statistics and Information (NCSI).
"Car loan interest rates are at an all-time low, the youth are getting jobs and projects are going on. So, it is difficult to find any reason, other than weak customer sentiment," said Bikram S. Rishi, chief executive officer of Muscat Finance, which is engaged in auto finance.
Rishi noted that the government's vehicle purchases had increased by 15.2 per cent to 1,400 units and rent-a-car companies' registrations had also surged by 29.9 per cent to 2,504 vehicles in the first seven months of 2015, up from a year ago.
He added that the interest rate for auto finance ranged between 4.5 per cent and 8.5 per cent, depending on whether the vehicle is brand new or used, and what is the tenure of the loan.
Registration for motorbikes also fell by 23.1 per cent to 562 bikes, from 731 motorbikes during the period under review. Oman imports vehicles for domestic sales and for re-exports to regional markets.
The Sultanate's total vehicle registration in 2014 was pegged at 143,034 vehicles, of which 77.89 per cent or 111,406 vehicles were private cars.
© Oman Daily Observer 2015
