How will the Corona virus affect the car market in Qatar?

By, 2020-03-25

سوق السيارات قطر

Q Motor - It is natural that the shortage of new car stocks leads to a rise in used car prices significantly, so why used car prices in Qatar have fallen knowing that the stock of new cars has decreased?

Since the start of the COVID-19 virus crisis, the world has witnessed rapid developments. The disruption of production in China greatly affected all sectors, including the auto sector. Many Japanese, European and American companies rely on Chinese factories to produce some auto parts. The recent outbreak of the Corona virus has disrupted the supply chains of major automakers due to the shortage of Chinese parts for more than 60 days.

And now, with the beginning of China recovering from this virus that killed the economies of the world before killing lives, Chinese factories started production but other markets; European, American and Japanese just entered in the problem of China, and most auto factories stopped. Factories producing vehicles are expected to stop production for a period of not less than 3 months. This means that we will see a break in the flow of new cars to the global markets until the end of June.

The interruption of the flow of new cars is sure to have major repercussions. It makes sense that the price of used cars rises significantly.

How will the car market in Qatar be affected?

Up to this moment, we are witnessing a great stagnation in the car market in Qatar due to the conditions in the country, and the measures taken by the government to limit the spread of the Corona virus. This is normal, and we will see it for about a month or a month and a half. This recession has kept used car prices the same as there is no offer or demand in this period.

But as soon as the signs of recovery from this virus start, and things start to return to normal, soon, God willing, the demand for cars will increase, but there will not be enough stock of new cars, so everyone will go to the used car sector, which will lead to higher prices. This is expected to happen in May and June of 2020.