Transportation & Construction Systems - Business Overview
Sumitomo’s partner KAR Motors’ TOYOTA Authorized Service Station (TASS)
With the third largest oil reserves in the world, Iraq, in the Middle East, has witnessed repeated wars throughout recent history, including the Iran-Iraq War (1980-1990), the Gulf War (1990-1991), Economic Sanctions (1991-2003) and 2nd Gulf War and instability (2003-present). The country is currently in the process of recovery as United States' troops prepare to pullout. Sumitomo Corporation supports Iraq on the path to new vitality through its car business.
Sumitomo's car business in Iraq has a long history. It dates back to the mid-1960s, when Sumitomo exported Toyota Motor Corporation's SUV (sport utility vehicles) Land Cruisers for the first time. Since then, Sumitomo has shipped about 250,000 Toyota cars and 10,000 Hino Motors' trucks, although wars have more or less affected its business. Sumitomo is thus a trusted company in the war-torn country and has achieved sound results over many years.
Inside an after-sales service station (total floor space of 1,550 m2)
The car business in Iraq has changed drastically since the Iraq War started in 2003. When the country was under socialist rule, government-funded corporations bought large numbers of cars. The car business thus mainly revolved around delivery of cars according to bidding results, and only a few regular citizens were able to buy cars via public corporation for private use. In the past few years, however, an open market for private demand has developed.
Iraq has a population of 32 million and the third largest oil reserves in the world. Because of its high potential, the country is expected to exhibit rapid economic growth in the future to grow into a large market equivalent to Saudi Arabia, where about 200,000 Toyota cars are sold every year. In light of this, Sumitomo Corporation will place greater emphasis on car sales in Iraq than ever before, aiming to sell 100,000 cars a year there in the future.
The situation in Iraq has largely been stable since around 2007, leading to boosted private demand for pickup trucks and taxis in the northern part of the country. Sumitomo Corporation aims to expand sales in the northern part and all over the country, including in capital city, Baghdad.
