Growth of Online Platforms: The last decade has witnessed the entry of various online auto classified platforms in the country such as Motory, Abi Sayara, Syarah, and more. The internet penetration in the Kingdom stood at ~93% in January 2020, highlighting the growing presence of consumers online. The majority of the leads for offline dealerships were also observed to be generated online. The traction towards online platforms has led to brands & local dealerships partnering with these platforms to list their used car inventory online.
Central & Western Region Dominating Sales: The central & western regions, particularly the cities of Riyadh & Jeddah were observed to account for the majority of the used car sales in the country. These regions also account for a large proportion of the working and ex-pat population in the country and act as a business hub. Most large brand-authorized dealers have multiple showrooms in these regions.
Challenges in Used Car Industry: The consistently increasing fuel prices in the country as well as high vehicle insurance rates have negatively impacted the used car sales over the review period. The departure of ex-pats from the Kingdom in 2016-2017 also led to a decline in sales as ex-pats constitute one of the major used car buyers in the country. The tripling of VAT from 5% to 15% from July 2020 is further expected to adversely affect sales from dealerships in the future.
Impact of COVID-19 on Used Car Sales Market: COVID-19 has severely impacted the automotive industry in Saudi Arabia, including the used car sales market. During the months from April-June, the footfall in showrooms declined by ~80%. Job losses among ex-pats and restricted international travel led to a surge in the supply of used cars from rental companies. Prior to the tripling of VAT from July 2020, the new, as well as used car sales, momentarily picked up. The demand for used cars is expected to remain low throughout the second half of 2020; slow recovery is expected to start from mid-2021. Companies are expected to increase their presence online to boost their pre-owned car sales.
Analysts at Ken Research in their latest publication “Saudi Arabia Used Car Market Outlook to 2025- By Market Structure (Organized & Unorganized), By Type of Car (Sedans & Hatchbacks, SUVs & Crossovers, Pick-ups and Luxury), By Brand (Toyota, Hyundai, GMC & Chevrolet, Ford and Others), By Type of Sourcing, 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) and By Region (Northern, Southern, Central, Eastern and Western)” observed that the used cars market in Saudi Arabia after declining post-2016, witnessed a recovery in 2019 and improvement in the used to new car sales ratio. Increasing value-added service offerings, rising presence of dealerships online, and introduction of Mojaz online vehicle history report are further expected to drive the industry’s growth in the future. The Used Car Industry in Saudi Arabia is expected to grow at a CAGR of 4.5% on the basis of gross transaction value over the forecast period 2019-2025.
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: –
Contact Us: –
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249
