Oman Used Car Market Future Outlook to 2030

 TraceData Research has recently launched its latest report titled “Oman Used Car Market Outlook to 2030”, offering a comprehensive view of one of the GCC’s most dynamic mobility segments.

The report dissects market performance by sales channel, vehicle type, powertrain, vehicle age, price band, and region, providing insights into growth drivers, challenges, and future opportunities.

Market Overview: Oman’s Used Car Industry Crosses OMR 450 million in 2024

The Oman Used Car Market reached a value of OMR 450 million (USD 1.17 billion) in 2024, supported by a 5.8% rise in total vehicle registrations.
Used cars accounted for around 65% of all vehicle registrations, according to data from Oman’s National Centre for Statistics and Information (NCSI) and the Oman Chamber of Commerce and Industry.

This robust performance reflects affordability pressures from rising new-car prices and 5% VAT, pushing many consumers toward pre-owned vehicles.
With banks maintaining stable auto-finance terms and strong liquidity, the sector continues to record steady momentum in both value and volume.

Regional Insights: Muscat Leads, Sohar Emerging Fast

• Muscat Governorate dominates Oman’s Second-Hand Car Market, thanks to superior infrastructure, dealership networks, and higher income levels.
  Vehicle registrations in Muscat grew 3.8% YoY in 2023.
• Sohar and Al Batinah North are the next growth hotspots — recording 6.8% annual growth in 2024 — supported by industrial expansion and Sohar Port’s logistical advantages.

These two hubs are set to remain Oman’s used-car anchors through 2030.

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Key Growth Drivers of Oman’s Used Car Market

1. Expanding Vehicle Base and Renewals

Oman’s registered vehicle count rose from 1.66 million in 2023 to 1.71 million by mid-2024.
This growing base ensures a consistent flow of trade-ins and fleet deflects into the pre-owned market, deepening inventory and model diversity.

2. Robust Bank Credit and Auto Finance

The Central Bank of Oman reports OMR 20.3 billion in private-sector credit, sustaining retail auto finance and dealer working capital.
Fast approvals and Islamic financing options continue to enhance buyer confidence in pre-owned cars.

3. Non-Oil Economic Expansion and Population Growth

With Oman’s population surpassing 5.3 million and non-oil GDP reaching OMR 27.8 billion, mobility needs are growing.
pre-owned vehicles serve as an affordable mobility solution for both local and expatriate populations.

Challenges Facing the Used Car Industry

1. Import Reliance and Customs Frictions

Vehicles and parts fall under HS Chapter 87, requiring customs clearance and compliance checks.
Global shipping or documentation delays can disrupt dealer inventories and inflate costs.

2. Inspection Bottlenecks for Older Cars

The Royal Oman Police (ROP) mandates technical inspections for vehicles older than 10 years and all commercial vehicles.
Inspection delays can extend resale timelines and limit dealer efficiency.

3. Market Scale and Variant Availability

Despite 1.7 million vehicles on the road, niche models and premium trims remain limited in availability, constraining choice in certain segments.

Regulatory Framework and Reforms

• Royal Decree 121/2020 established VAT at 5%, impacting Oman used-car pricing and dealer invoicing.
• ROP Decision 88/2024 formalized standards for vehicle inspection centres, improving transparency and vehicle condition assurance.
• Extended license validity for newer private cars reduces renewal frequency for owners.

These regulatory reforms aim to enhance market credibility and ensure safe, compliant transactions.

Market Segmentation Snapshot (2024)

By Vehicle Type

• SUVs: ~45% market share
• Sedans: ~30%
• Hatchbacks, Pickups, and Luxury/Performance cars form the remainder.

By Sales Channel

• Online marketplaces: 68.5% share
• Organized dealers (OEM CPO + multi-brand): growing rapidly
• Unorganized C2C segment: declining under digital pressure

By Powertrain

• Petrol remains dominant, but hybrid and electric used cars are gaining interest amid sustainability goals.

Competitive Landscape: Digital Marketplaces Dominate

Leading players shaping Oman’s pre-owned car space include:

Platform / Dealer	Year Founded	Headquarters
Dubizzle Oman (OLX)	2005	Muscat
YallaMotor Oman	2015	Muscat
OpenSooq Oman	2008	Amman
Best Cars (Saud Bahwan Group)	1965	Muscat
MHD Used Cars (MHD LLC)	1974	Muscat
Kavak Oman	2023	Muscat

Notable Developments in 2024:

• Dubizzle Oman: launched instant car valuations and escrow payments.
• YallaMotor: partnered with authorized dealers for hybrid digital-retail integration.
• Best Cars: expanded Toyota/Lexus Certified Pre-Owned programs.
• Kavak: entered with a digital-first model and 7-day return policy.

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The Road Ahead: What’s Next for Oman’s Used Car Market?

The market is forecast to maintain steady growth through 2030, driven by:

1. Rise of Online-to-Offline Marketplaces
   Seamless digital-to-physical integrations with instant valuations, test drives, and secure payments.
2. Expansion of Certified Pre-Owned (CPO) Programs
   multi-brand dealers offering warranties and buy-back options to boost buyer confidence.
3. Growth in Secondary Cities
   Sohar, Nizwa, and Salalah poised for rising demand as income and infrastructure expand.
4. Adoption of EVs and Hybrids
   Oman’s EV infrastructure development will gradually introduce electric and hybrid used cars into the mainstream.
5. AI-Driven Pricing & Analytics
   Dealers leveraging predictive analytics to optimize pricing, reduce days-to-sell, and enhance customer experience.

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