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Increasing Prices of New Cars with the Tripling of VAT rate and Shifting Preferences towards Online Platforms driving Used Car Sales in Saudi Arabia: Ken Research

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



By Type of Cars

Sedans & Hatchbacks

SUVs & Crossovers



By Brand



GMC & Chevrolet



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






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)




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


Online Auto-Classifieds/Platforms Covered





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


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