The Truck Market in Iraq Is on the Rise

Motor Vehicles July 12, 2018
Author: Anna Sergeeva
Market Analyst

IndexBox has just published a new report "Iraq: Trucks - Market Report. Analysis And Forecast To 2025". Here is a summary of the report’s key findings.

The Truck Market Plunged Dramatically

The truck market in Iraq totalled 13,347 units in 2016, experiencing mixed trend patterns from 2007 to 2016. From 2007 – 2009, the market grew significantly and then decreased over the next two year period. It then started to see a recovery, and surpassing pre-crisis figures, continued to expand. However, from 2015 to 2016, the Iraq trucks market decreased significantly, which was caused by a drop in demand due to the deterioration of the economic situation with the new war starting in the country. 

The Truck Market Is Expected to Grow Modestly

Should there be any sign of gradual political stabilization, the country's economy shall recover, the demand for freight transportation will then grow. An additional contribution is expected following the growing demand for construction materials required for rebuilding destroyed cities, as well as the development of trade relations between Iraq, its neighboring countries and Asian countries (primarily, China and Southeast Asian countries); all in all, influenced by these factors, the truck market will be gradually growing. At the same time, due to relatively low oil prices along with a lot of risks to political stability in Iraq, which all hamper the economy development, it is expected that the growth of the truck market will be modest. Market performance is forecast to increase with an anticipated CAGR of +0.5% for the period from 2016 to 2025, which is expected to bring the market volume to 14.0K units by 2025.

Trucks Production in Iraq Improved over the Last Year

Iraq’s trucks output increased to 439 units in 2016, an increase of 4 units (or 1%) more than the previous year. The production of trucks in Iraq remains insignificant and unstable. A notable growth in production volume in Iraq is due to the expansion of production by foreign companies. 

Iraq domestic truck production, however, remains insignificant in comparison with the volume of imports, which are shipped mainly from Asian countries (the Republic of Korea, the UAE, Kuwait, China) and the EU (the UK, Spain and the Netherlands). Despite a decline in imports in recent years, Iraq depends completely on imported trucks.

Truck Exports from Iraq Remain Negligible

Exports of trucks from Iraq remain negligible both in terms of volume and value, fluctuating near only 3 units over the last five years, which equated $0.2M in 2016. As the result, in 2016, Ghana (2 units) and Korea (1 unit) were the only destinations of truck exports from Iraq. Previously, a very small amount of trucks was also exported to Turkey, Venezuela and some other countries, but these supplies were negligible.

Truck Imports Plunged Abruptly due to Current Military Instability in Iraq

The volume of total truck imports in Iraq totalled 12,911K units in 2016, which equated to $197M in value terms. The volume of imports grew robustly from 2008-2009, but then it slipped down on the backdrop of the global financial crisis and political instability in Iraq. Afterwards, it soared from 2012-2014 amid high oil prices, which promoted the recovery of economy of Iraq. Over the next two years, however, the volume of imports plunged dramatically, caused by a new war in Iraq and the loss of control over a large piece of the country’s territory by the government. In value terms, the trend pattern was similar to that of the volume of imports.

Korea (4.7K units), the U.A.E. (3.9K units), Kuwait (1.7K units), China (0.8K units) and the UK (0.6K units) remain the key suppliers of trucks to Iraq, together accounting for 91% of the total imports in 2016. 

From 2007 to 2016, Korea (+10.3% per year) and the U.A.E. (+4.6% per year) had the highest growth rates of the import supplies to Iraq, while Kuwait (-4.4% per year) and China (-20.2% per year) experienced negative dynamics of the volume of supplies. Consequently, the share of Korea (+26 percentage points) and the U.A.E. (+15 percentage points) in terms of the total imports increased noticeably from 2007-2016. By contrast, the share of China reduced from 34% in 2007 to 6% in 2016. The shares of the other countries remained relatively stable throughout the analysed period.

Do you want to know more about the truck market in Iraq? Get the latest trends and insight from our report. It includes a wide range of statistics on

  • truck market share
  • truck prices
  • truck industry
  • truck sales
  • truck import
  • truck export
  • truck market forecast
  • truck price forecast

Source: Iraq: Trucks - Market Report. Analysis And Forecast To 2025