Future of Saudi Arabia Used Car Market Growth Rate: Ken Research

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How Is the Saudi Arabia Used Car Market Positioned?

The Kingdom of Saudi Arabia is the largest automotive market in the GCC & the gulf region. It is an important market for car manufacturers and is home to various automotive OEMs. The growing disposable incomes of the people and the recent addition of women drivers to the target audience have contributed to the growth of both new as well as used car sales. The review period also witnessed a boom in the number of online platforms in the country. The General Administration of Traffic also launched a summary service that provides a detailed report on the vehicle’s history, insurance records, previous owners, accidents registered, and more to increase the level of transparency and trust in the market and aid the decision-making process of used car buyers.

The used car sales in the Kingdom reached ~ thousand in 2019, witnessing a CAGR of ~% over 2014-2019. The market was valued at SAR ~ billion on the basis of gross transaction value in 2019, growing at a CAGR of ~% over the review period. The used to new car sales ratio was found to be ~ in 2019, highlighting significant improvement. The market faced decline during the review period owing to various factors including economic instability. The departure of ex-pats from the Kingdom during 2016-2017 also adversely impacted the used car sales as they comprised a significant proportion of the used car buyers. Growing traction towards online platforms is contributing to an increase in sales of used cars.

Saudi Arabia Used Car Market _ Infographic

Saudi Arabia Used Car Market Segmentation

By Market Structure: The used car industry in Saudi Arabia was identified to be largely unorganized due to the preference towards peer to peer sales. Multi-brand outlets & authorized dealerships contributed to the remaining sales volume.

Organized Market Segmentation

By Sales Channel: Multi-brand outlets/exhibitions accounted for maximum used car sales in the country. Authorized dealerships have relatively less traction in the industry.

Unorganized Market Segmentation

By Sales Channel: Peer-to-peer sales were analyzed to dominate the market, particularly through online auto-classified platforms.

By Type of Car: Sedans were analyzed to account for maximum used car sales in-country in 2019 and are popular among various types of consumers. There is growing traction towards SUVs & crossovers.

By Brand: Toyota & Hyundai continue to dominate the used car sales in the country due to better re-sale value to these brands & easy availabilities of spare parts. Sedans are the most popular car types sold for both of these brands. Other brands popular in the market include Ford, GMC & Chevrolet among others.

Saudi Arabia Used Market Segmentation

By Age of Vehicle: A large proportion of the used cars sold in 2019 were observed to be 3-5 years old. 1-3-year-old cars accounted for the second-highest sales volume.

By Kilometers Driven:  Cars with a mileage between 80,000-120,000 km accounted for maximum used car sales in the country, followed by 50,000-80,000 km

By Region: The central region witnessed the highest used car sales in the country in 2019. The large presence of the working population in the region, including ex-pats, & higher disposable income contributed to the high demand.

By Age Group of Buyers: The majority of the used car buyers in the country were observed to fall under the age bracket of 30-60 years. This age group largely includes large families having multiple cars, ex-pats, working professionals & more. The demand for younger people in the age group 18-30 years is also increasing rapidly.  

By Type of Sourcing: Majority of the used cars in the kingdom are sourced from car-rental/leasing companies & auctions. The country is home to many large car-rental companies with massive car fleets which they de-fleet every 2-3 years. Direct buying from consumers or individual sellers is another major source.

Competition Scenario In Saudi Arabia Used Car Market

The used car industry in Saudi Arabia is highly competitive with approximately 2,300+ dealerships operating in the space. Both multi-brand outlets/exhibitions & brand-authorized dealerships are operating in the market and each focus on geographical presence and value-added services offered as a key parameter to distinguish themselves. The top 6 brand-authorized players account for ~% of the market on the basis of sales volume. The review period also saw many online auto-classified platforms and marketplaces entering the market. These platforms focus on increasing consumer engagement, a number of listings, and on-boarding more dealers on their platform.

Saudi Arabi Used Car Market Future Outlook and Projections

The used car market in India is expected to grow at a CAGR of ~% on the basis of gross transaction value and ~% on the basis of sales volume over the forecast period 2019-2025F. The market is expected to witness growth post-COVID-19 from 2021 and sales are expected to recover. Companies are expected to focus on a wider distribution network including online marketplaces & e-commerce platforms and invest in research and development to compete with online platforms and boost their used car sales. The forecast period is also expected to witness growth in the demand for SUVs and crossovers in the country.

Key Segments Covered: –

Saudi Arabia Used Car Market (On the basis of GTV)

Saudi Arabia Used Car Market (On the basis of Sales Volume)

Saudi Arabia Used Car Market Segmentation (On the basis of Sales Volume)

By Market Structure

Organized

Unorganized

By Type of Cars

Sedans & Hatchbacks

SUVs & Crossovers

 Pick-ups

 Luxury

By Brand

Toyota

Hyundai

GMC & Chevrolet

Ford

Others

By Age of Vehicle

Less than 1 year

1-3 years

3-5 years

More than 5 years

By Kilometers Driven

Less than 50,000 Km

50,000-80,000 Km

80,000-120,000 Km

More than 120,000 Km

By Regions

Central

Western

Eastern

Southern

Northern

By Age Group of Buyers

18-30 Years

30-60 Years

More than 60 Years

By Type of Sourcing

Car-Rental/Leasing Companies (including Auctions)

Buy-Sell/Park-Sell

Imports

Trade-Ins

Organized Used Car Market

By Sales Channel

Multi-brand Outlets/Exhibitions

Authorized/Direct Dealership Outlets

Unorganized Used Car Market

By Sales Channel

Customer to Customer (C2C)

Local Dealerships

Dealerships Covered

Abdul Latif Jameel Motors

Aljomaih Automotive Company Ltd.

Al Jazirah Vehicles Agencies Co.

Universal Motors Agencies Ltd.

Mohamed Yousuf Naghi Motors Co.

United Motors Company

Gulf Advantage Automobiles LLC

Others

Online Auto-Classifieds/Platforms Covered

Haraj

Motory

Syarah

SaudiSale

Abi Sayara

Key Target Audience

Car Dealerships

Car Manufacturers

Car-Rental and Leasing Companies

Used Car Importing Companies

Online Auto Classified Companies

Industry Associations

Regulatory Bodies

Used Car Auction Companies

Time Period Captured in the Report

Historical Period: 2014-2019

Forecast Period:  2019-2025

Key Topics Covered in the Report: –

Overview and Genesis of Saudi Arabia Used Car Industry

Target Audience Demographics

Trends and Growth Drivers in the Industry and Challenges Faced

Saudi Arabia Used Car Market Size and Segmentations, 2014 – 2019

Ecosystem and Value Chain of Used Car Industry

Customer Decision Making Parameters & Brand Perception Mapping

Cross Comparisons between Major Authorized Dealerships and Online Auto-Classifieds/Platforms and Company Profiles

Future Market Size and Segmentations, 2019-2025F

Covid-19 Impact on the Industry, the Way Forward & Upcoming Online Business Models

Analysts’ Recommendations

For More Information on the research report, refer to below link: –

Future of Saudi Arabia Used Car Market

Related Reports by Ken Research: –

Spain Used Car Market Outlook to 2023 – Growth within Car Rental Companies Coupled with Shared Vehicle Mobility Segment to drive Used Car Sales Volume in Spain

France Used Car Market Outlook to 2023 – Surge in Demand for Rental Cars Backed by Increased Online Used Car Sales

Qatar Auto Finance Market Outlook to 2023 –By Banks, Non-Banking Financial Companies and Captives, By New and Used Vehicles Financed, By Type of Vehicle Financed (Motor Bikes, Cars, and Light Commercial Vehicles) and By Loan Time Period

Contact Us: –
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249

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