Saudi Arabia Passenger Car Market to Grow at 6.25% CAGR By 2026
Increasing women drivers
coupled with rising per capita spending of the consumers is driving the Saudi
Arabia passenger car market through 2026.
According
to TechSci Research report, “Saudi
Arabia Passenger Car Market By Vehicle Type (Hatchback, Sedan, MPV, Pickup
& SUV), By Fuel Type (Petrol, Diesel & Others), By Transmission Type
(Manual Transmission & Automatic Transmission), Competition Forecast &
Opportunities, 2016-2026”, Saudi Arabia passenger car market is estimated to
reach USD17.64 billion in 2026 from USD11.33 billion in
2020, and is projected to advance with a CAGR of 6.25% in terms of value. Growth
in the passenger car market is driven by expanding road infrastructure and
increasing per capita spending of the people in the country. Removal of ban and
growing preference for women drivers has uplifted the passenger car market in
Saudi Arabia. Changes in the government norms for females driving automotive
vehicles after decades has resulted in the growth of women drivers. Moreover,
opting for self-driving gives many women a sense of empowerment. Many women are
hitting Saudi roads with four-wheelers and several women with foreign licenses
have already obtained Saudi driving licenses which in turn is further going to
boost the passenger car market in Saudi Arabia.
Browse more than 75 market data Figures and 4 data tables spread through 145 Pages and an in-depth TOC on "Saudi
Arabia Passenger Car Market" https://www.techsciresearch.com/report/saudi-arabia-passenger-car-market/1669.html
Saudi
Arabia passenger car market can be segmented based on vehicle type, fuel type,
transmission type, and company. In terms of vehicle type, the sedan car segment
accounts for the largest share but due to increasing traffic congestion and
shortage of parking space by daily commuters, this segment is anticipated to
lose the market share. Whereas, the SUV segment is expected to grow at an
impressive rate in the forecast period owing to the growing demand for cars
with higher engine capacity and off-roading capabilities. Based on transmission
type, the market is categorized into automatic transmission and manual
transmission. Automatic transmission is more popular in the country owing to
stringent traffic rules in Saudi Arabia, coupled up with increase in sales of
premium cars owing to the rise in consumer spending. Lifting up of the ban on
women driving has resulted in growth of automatic cars sales in the country. In
2020, the market share of automatic passenger cars accounted for over 85% in
terms of volume. Due to the above-mentioned factors, demand of automatic
transmission is growing compared to the complicated manual transmission.
In
the year 2020, to prevent the spread of COVID-19, the government implemented
lockdown which impacted international trade as well as domestic sales.
According to TechSci Research’s estimates, the market suffered a decline of
13.88% in terms of volume. According to the Saudi Arabia’s General Authority of
Statistics, the imports declined by 11.9% in Q1 2020 as compared to Q1 2019 and
a further decline of 24.2% was witnessed in Q2 2020 as compared to Q2 2019.
This decline left a remarkable depreciation in the market, but the market is
currently reviving and is set to overcome the descent in 2021-2022 period owing
to the government’s stimulus for economic revival and unlocking international
trades and investments. However, after facing a degrowth in the import and
export of automotive sector in 2020, the market has started reviving and is
getting back to the normal condition, due to reoperations of the manufacturing
plants and import. This is further anticipated to increase the sales of
passenger cars in Saudi Arabia. People are also interested in purchasing the
upgraded version of previously available passenger car models which are coming
with technologically advanced features.
Toyota Motor Corporation, Nissan Motor Company, Ltd., Hyundai Motor
Company, Kia Corporation, Mazda Saudi Arabia, General Motors Co., Ford Middle
East, Isuzu Motors Saudi Arabia Co. Ltd., Volkswagen AG, and Renault Middle
East are among some
of the leading players operating in the Saudi Arabia passenger car market. Apart from these companies, other passenger car
manufacturers are also increasing their marketing activities and enriching
product portfolio in the region to increase their customer outreach. Major
companies in the Saudi Arabia passenger car market industry are also focusing
on developing a robust dealer and distributor network to gain competitive edge.
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“In 2020, sedan cars accounted for the largest share, i.e., 56% in Saudi
Arabia passenger car market. The vehicle type is expected to maintain its
dominance over the next five years as well. However, hatchback cars are
observed to grow rapidly owing to an increase in the service sector and daily
commutation purposes. Increase in partnerships with local dealers and
distributors and expanding per capita income in the country is boosting demand
for passenger cars in Saudi Arabia.”, said Mr. Karan Chechi, Research Director
with TechSci Research, a research based global management consulting firm.
“Saudi Arabia Passenger Car Market By Vehicle Type
(Hatchback, Sedan, MPV, Pickup & SUV), By Fuel Type (Petrol, Diesel &
Others), By Transmission Type (Manual Transmission & Automatic
Transmission), Competition Forecast & Opportunities, 2016-2026” has evaluated the future growth potential of Saudi
Arabia passenger car market and provides statistics and information on market
size, structure and future market growth. The report intends to provide
cutting-edge market intelligence and help decision makers take sound investment
decisions. Besides, the report also identifies and analyzes the emerging trends
along with essential drivers, challenges, and opportunities in the Saudi Arabia
passenger car market.
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