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 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
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Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
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