Chinese carmaker Chery eyes Saudi Arabian market. Despite the repercussions of the pandemic for the automotive sector, Chery witnessed increased demand since the beginning of 2019, as the company launched its latest models designed with more presentable external frames and attractive interior compartments, and equipped with the latest technological features to meet the aspirations of diverse target groups in the Saudi market.
The COVID-19 pandemic has accelerated the sales of cars online and convinced a growing number of customers to avoid showrooms for future purchases.
IT Spending in Automotive Market to See Huge Growth By 2025 to enable precise and authentic market estimations considering all the parameters and market dynamics.
Saudi Government's Vision 2030: Under the Vision 2030, the KSA government aims for OEMs to produce 300,000+ vehicles in the country between 2020 & 2030. Saudi Vision 2030 aims to reduce dependence on oil exports highlight the potential for growth of logistics industry in future. Large investments in road infrastructure under Saudi Vision 2030, a 680 Km Saudi-Oman highway and the UAE-Saudi Mafraq-Ghuwaifat International Highway underway contribute to the growth of the logistics industry.
Technological Advancements and Innovations to Drive the Operational Efficiencies: Rising adoption of technologies such as RFID, Warehouse Management System, Transportation Management System and others modules enabling SAP and other ERP based integration by Car Dealerships, Car Workshops, Spare Parts Retailers & Rental Companies in Saudi Arabia is leading to improved cost efficiency within their operations. Companies have started adopting these technologies to have an edge over other players in the automotive market in the country.
Development of Domestic Automotive Industry via Skill Enhancement: Digital Skill Training & Labor Quality Enhancement program will provide more than 600,000 students & 11,000 male and female teachers with programming training to aid digitization. This will support both teachers & students in various institutes, providing highly skilled Saudi national labor to enhance quality of operations. This will further help in strengthening the car manufacturing industry across the country which aims to attract Saudi and foreign investments, increase exports, provide job opportunities, and contribute to economic diversification as part of Vision 2030 Vision.
The report further analyzed each segment in detail, providing a brief overview along with market size, segmentation, competition analysis, trends, developments & future analysis of various segments, focusing keenly on entity relationships & business models. These segments are then further analyzed to gain a better understanding of the ERP & CRM modules required to pave the way for digitization amidst the industry across KSA.
Key Segments Covered:
KSA Imports & Sales Industry (Distributors & Dealerships)
Import & Export Analysis
Competition Analysis of Major OEM Brands
Future Trends & Developments & Growth Factors
KSA Automotive Aftermarket Spare Parts & Service Industry
Spare parts Industry
Aftermarket Service Industry
Competition Analysis of Major Players via Cross Comparisons & Heat Maps
KSA Automotive Leasing & Rental Industry
KSA Rental Industry (Market Size, Competition & Segmentation)
KSA Leasing Industry (Market Size, Competition & Segmentation)
Impact of COVID-19 on KSA Automotive Industry
Impact of COVID-19 on KSA Automotive Industry
Mobility Industry looks forward to Utilize Digital Platforms
Post-COVID KSA Automotive Industry Outlook
Technology Adoption & Usage Trends in KSA Automotive Industry
The used car industry in Saudi Arabia has grown at a CAGR of 0.8% on the basis of gross transaction value over the period 2014-2019 and declined at a CAGR of -2.4% on the basis of sales volume. The departure of expats from the country and the economic instability contributed to the decline in sales during 2016-2017. The addition of women drivers and the high levels of disposable income in the country are one of the major growth drivers of the industry. Boom in the number of online auto-classified platforms and the traction of the consumers towards online platforms is contributing to the inclining used car sales in the country.
The report also covers the trade scenario, trends and developments, issues and challenges, SWOT analysis, regulatory landscape, end user analysis, value chain analysis, PESTLE analysis, COVID-19 impact on automotive & spare parts transportation industry, decision making process, snapshot on control tower market, snapshot on pre-delivery inspection market, COVID-19 impact on automotive & spare parts warehousing industry, technological advancements & innovations, comparative landscape including cross comparison of major players operating in KSA automotive & spare parts logistics market and cross comparison of major players operating in KSA automotive market. The report concludes with future market projections on the basis of overall logistics and automotive & spare parts logistics revenue, by service mix and analyst recommendations highlighting the major opportunities and cautions.
Saudi Arabia car rental market is at the growth stage witnessing intense competition. Increase in the tourist arrivals, employment rate and growing number of establishments in the kingdom has propelled momentum to the market. The GDP of Saudi Arabia has increased considerably during the review period. The market size of construction industry in the kingdom has increased aggregating a CAGR of close to 3.9% during 2013-2018 owing primarily to the higher demand for car leasing and rental. Major car rental companies such as United International Transportation Company, Hanco, Best Rent a Car, Hertz, Avis, Key, Al Wefaq, Al Tayyar, Enterprise, Samara and others have complimented the target audience in terms of availability of wide range of services. Saudi Arabia car rental & leasing market has witnessed sound growth at a CAGR of around 12.5% in terms of fleet size from leasing segment and 4.6% in terms of fleet size from rental segment during the revenue period 2013-2018.
Thailand Used Car sector is in the maturity phase, growing at a CAGR of 1.8% during 2014-2020. Increasing demand for private vehicles, reduction in purchasing power, easy availability of finance, and increasing VAT on new cars are the main reasons behind positive growth in used car sales revenue. Another major driver is the drop in use of public transport due to the pandemic and need for private vehicle. B2C/OEM Organized market dominated the used car industry in Thailand in 2020 on the basis of value and volume. The presence of major OEM is concentrated in the Bangkok, Vicinity and Tier-2/Tier-3 cities; However, Multibrand dealers are present throughout the country, both online and offline.
Indonesia's automotive aftermarket service industry revenue stood at USD ~ billion in 2021 and recorded a CAGR of 5.4% during 2015-2021. The multi-brand workshops dominate the Indonesian automotive aftermarket service industry due to their cheaper service fee and generalized service offerings. ~% of the after-sales care service market is captured by the multi-brand service centers owing to its low service & spare parts cost and high preference by post warranty car owners. OEM car service centers in Indonesia witness the majority of the pre-warranty cars visiting their centers. High-quality service, genuine spare parts and more reliability on the OEM service centers are other reasons why a customer prefers the OEM service centers in Indonesia.