BY MOHAMMAD SHOEB
DOHA: Demand for rented pick-ups and cars is on the rise, but the problem is there is a shortfall in the supply of pick-ups, says a representative of a leading car rental company.
With work on some mega infrastructure projects picking up momentum, car rental companies are witnessing high demand, especially for a particular brand of pick-up vans. However, local car dealers, taking advantage of the opportunity, are allegedly charging five to 10 percent higher prices compared with those in other GCC markets.
“Enquires for rented vehicles, especially for a particular brand of pick-up manufactured by a leading Japanese company, is high. We are not able to meet demand due to shortfall in supply… We have had placed some orders for the same a couple of months ago, but we were told that there will be no shipment before September,” said Ziad Usman, Assistant General Manager of Al Muftah, a leading car rental company.
Usman said that given the market situation, car dealers in Qatar across the board are making abnormal profit by charging five to 10 percent higher prices than other dealers in the neighbouring states.
“Prices of cars in Qatar are the highest in the Middle East. Even the prices of budget-cars (mid-segment saloon vehicles) are QR3,000 to QR5,000 costlier, while the price difference for eight-cylinder Sports Utility Vehicles range between QR25,000 and QR40,000,” he said.
Despite attempts, no senior officials at local car dealers were available for comments.
However, a sales executive at Abdullah Abdul Ghani Motors, which is the sole importer of Toyota products in Qatar, said: “More or less our prices are competitive compared with prices in other markets in the region. The price range for Hilux pick-ups varies between QR77,000 and QR92,000 depending on models and their features.
“Hilux pick-ups (4x4), if ordered in bulk, will be available at QR88,000 (after a discount of QR4,000) with an advance order of one month, while the 4x2 models are readily available.”
Speaking about challenges in car rental business, Usman said that accidents involving vehicles with no insurance and road permits are frequent; as a result, the overheads of the company are increasing.
“In some cases individuals after meeting with accidents do not turn up at the Traffic Department, and the company, in order to save time, is compelled to repair the vehicles at its expense.”
Asked if the new rules for issuing driver’s licences will have any impact on car rental companies, he said: “The new rule that only employees with driver’s visa can take licences is a blow for all companies.
“It’s difficult to get visas the companies apply for, and the process of issuing drivers’ licence is time-consuming with theory classes, as a result many companies promote their staff as drivers or messengers.”
The Peninsula
