$1.91 Billion Kuwaiti Car Market Projected for 2026

- 1.546 billion KD in passenger vehicle imports in 2025

- 70 percent of sales concentrated in Kuwait, Ahmadi, and Hawalli

- 3 to 5-year-old vehicles are the most in demand

- Digital platforms are the fastest-growing channels for used car sales

- Sedans lead the market, while four-wheel drives show the fastest growth

As the supply base expands and the activity of local vehicle sales and rental companies grows, the used car market is witnessing significant expansion. This trend coincides with the entry of major car agencies and groups into the market, alongside the expansion of ancillary services ranging from inspection and warranty to financing, maintenance, and insurance.

According to the Central Statistical Bureau, the used car market is fueled by a large base of vehicles entering Kuwait annually. The value of passenger vehicle imports reached 1.546 billion KD in 2025, an increase of 212.09 million KD, representing a 15.9 percent growth compared to 1.334 billion KD in 2024.

The used car market is continuously fueled by the rapid influx of modern vehicles, driven by the desire of a wide segment of consumers to upgrade their models. This trend also includes rental companies, engineering firms, and oil sector companies, through their employees.

The export of used vehicles also plays a role in increasing demand within this market. The value of exported passenger vehicles reached approximately 113.538 million KD in the fourth quarter of 2025, and around 84.503 million KD in the first quarter of 2026, reflecting an additional aspect of the vehicle lifecycle in Kuwait.

Recent data from Mordor Intelligence indicates that the value of the used car market in Kuwait reached approximately 1.65 billion USD in 2025, with expectations for it to rise to 1.91 billion USD in 2026, and then to 3.94 billion USD by 2031, at a compound annual growth rate (CAGR) of 15.62 percent during the 2026–2031 period. The data shows that the price segment between 10,000 and 14,999 USD accounted for 29.10 percent of the market in 2025, as it is the most suitable segment for purchasing power and available financing. Meanwhile, vehicles valued over 30,000 USD recorded the fastest expected growth rate, at 11.1 percent annually until 2031.

Regarding vehicle age, cars aged between 3 and 5 years constituted the largest market segment, holding a 33.95 percent share in 2025. This segment offers buyers a combination of lower prices compared to new cars, reduced initial depreciation, and the availability of vehicles that still feature modern specifications and warranty or maintenance programs.

Conversely, the segment of vehicles aged between 0 and 2 years is growing at a rate of 13.15 percent annually, driven by the return of rental and fleet vehicles to the market, thereby expanding the supply base of nearly new cars.

In terms of vehicle types, sedans accounted for 37.8 percent of the used car market in 2025, driven by their widespread availability, suitability for urban use, and fuel efficiency.

Four-wheel drive vehicles are expected to record the highest growth rate, at 17.1 percent annually until 2031, with sustained demand, particularly for family and recreational use.

Despite the entry of companies, agencies, and digital platforms, unregulated sellers still represent the largest portion of the used car market, accounting for 71.55 percent of revenues in 2025. However, the report expects the regulated sector to continue expanding at a rate of 8.75 percent annually until 2031, driven by increased consumer interest in the long-term cost of vehicle ownership, rather than just the purchase price.

Significant segments of the used car market are concentrated in areas with high densities of showrooms and services, with Shuwaikh serving as a key hub for car movements, auctions, and trade, alongside Farwaniya and Jahra, which host a large number of car lots and showrooms.

The report indicates that Kuwait City, Ahmadi, and Hawalli collectively account for more than 70 percent of transaction volume, reflecting the concentration of commercial and service activities in several major areas.

On the other hand, the expansion of the used car market is not limited to increased supply; it also sees growth in companies that combine car rental with the sale of used vehicles. This provides a steady supply of relatively newer cars and offers consumers a wider range of well-maintained used vehicles at competitive prices.

At the same time, buying a used car is no longer based solely on price. Showrooms, companies, and agents compete to offer added value through inspected and guaranteed vehicles, clear maintenance histories, and after-sales services. This model enhances consumer confidence in purchasing used cars, especially given the ease of accessing information about a vehicle’s history, technical condition, and post-purchase ownership costs. Consequently, competition is gradually shifting from merely offering the lowest price to delivering the best value for money.

Regarding sales channels, traditional channels accounted for 60.55 percent of the market in 2025. However, electronic channels are poised for growth, with a compound annual growth rate of 18.25 percent during 2026–2031, reflecting a gradual shift in search and purchasing behavior as consumers increasingly rely on digital platforms to compare prices, specifications, and vehicle histories before proceeding to inspections and finalizing purchases.

Gasoline cars held 85.1 percent of the used car market in 2025, supported by low fuel prices and the availability of infrastructure and services tailored to traditional vehicles.

Electric vehicles still represent a limited segment of the used car market but are the fastest-growing fuel type, projected to grow annually by 20.95 percent during 2026–2031. They are gradually forming their own used car market, driven by expanding charging infrastructure and rising numbers in the used vehicle sector.