Saudi Arabia Passenger Car Market, Forecast and Opportunities by David Johnson

2016 – 2026 SAUDI ARABIA PASSENGER CAR MARKET FORECAST AND OPPORTUNITIES Published: February 2021

Table of Contents S. No.

Contents

Product Overview

Research Methodology

Executive Summary

Voice of Customer

4.1.

Factors Influencing Purchase Decision

4.2.

Influencer of Purchase

4.3.

Aided Brand Recall

4.4.

Unaided Brand Recall

4.5.

Brand Satisfaction Level

Saudi Arabia Passenger Cars Market Outlook 5.1.

Market Size & Forecast 5.1.1.

5.2.

Market Share & Forecast 5.2.1.

By Vehicle Type (Hatchback, Sedan, MPV, Pickup and SUV)

5.2.2.

By Fuel Type (Petrol, Diesel and Others)

5.2.3.

By Transmission Type (MT and AT)

5.2.4.

By Company

5.3.

Market Attractiveness Index (By Fuel Type)

5.4.

Market Attractiveness Index (By Transmission Type)

Saudi Arabia Sedan Car Market Outlook 6.1.

Market Size & Forecast 6.1.1.

6.2. Automotive

By Value & Volume

Market Share & Forecast © TechSci Research

Table of Contents S. No.

Contents 6.2.1.

By Engine Capacity (<1600cc, 1600-2000cc, 2001-2400cc, >2400cc)

6.2.2.

By Fuel Type (Petrol, Diesel and Others)

6.2.3.

By Transmission Type (MT, AT)

6.3.

Market Attractiveness Index (By Fuel Type)

6.4.

Market Attractiveness Index (By Transmission Type)

6.5.

Market Attractiveness Index (By Engine Capacity)

Saudi Arabia SUV Car Market Outlook 7.1.

Market Size & Forecast

7.1.1. 7.2.

Market Share & Forecast 7.2.1.

By Engine Capacity (<1800cc, 1801-2400cc, >2400cc)

7.2.2.

By Fuel Type (Petrol, Diesel and Others)

7.2.3.

By Transmission Type (MT, AT)

7.3.

Market Attractiveness Index (By Fuel Type)

7.4.

Market Attractiveness Index (By Transmission Type)

7.5.

Market Attractiveness Index (By Engine Capacity)

Saudi Arabia Pickup Car Market Outlook 8.1.

Market Size & Forecast 8.1.1.

8.2.

Automotive

By Value & Volume

Market Share & Forecast 8.2.1.

By Engine Capacity (1600-2400cc, >2400cc)

8.2.2.

By Fuel Type (Petrol, Diesel and Others)

8.2.3.

By Transmission Type (MT, AT) © TechSci Research

Table of Contents S. No.

Contents 8.3.

Market Attractiveness Index (By Fuel Type)

8.4.

Market Attractiveness Index (By Transmission Type)

8.5.

Market Attractiveness Index (By Engine Capacity)

Saudi Arabia MPV Car Vehicle Market Outlook 9.1.

Market Size & Forecast

9.1.1. 9.2.

10.

Market Share & Forecast 9.2.1.

By Engine Capacity (1400-1800cc and >1800cc)

9.2.2.

By Fuel Type (Petrol, Diesel and Others)

9.2.3.

By Transmission Type (MT, AT)

9.3.

Market Attractiveness Index (By Fuel Type)

9.4.

Market Attractiveness Index (By Transmission Type)

9.5.

Market Attractiveness Index (By Engine Capacity)

Saudi Arabia Hatchback Vehicle Market Outlook 10.1.

Market Size & Forecast 10.1.1.

10.2.

Automotive

By Value & Volume

Market Share & Forecast 10.2.1.

By Engine Capacity (1200-1600cc, <1200cc and >1600cc)

10.2.2.

By Fuel Type (Petrol, Diesel and Others)

10.2.3.

By Transmission Type (MT, AT)

10.3.

Market Attractiveness Index (By Fuel Type)

10.4.

Market Attractiveness Index (By Transmission Type)

10.5.

Market Attractiveness Index (By Engine Capacity) © TechSci Research

Table of Contents S. No.

Contents

11.

Import-Export Analysis

12.

Supply Chain Analysis

13.

Impact of COVID-19

14.

Market Dynamics 14.1.

Drivers

14.2.

Challenges

15.

Policy and Regulatory Landscape

16.

Market Trends and Developments

17.

Saudi Arabia Economic profile

18.

Competitive Landscape 18.1.

Toyota Motors Corporation

18.2.

Hyundai Motor Company

18.3.

Mazda Saudi Arabia

18.4.

Nissan Motor Co. Ltd

18.5.

General Motors Co.

18.6.

Ford Middle East

18.7.

Kia Motors Corp

18.8.

Isuzu Motors Saudi Arabia Co. Ltd.

18.9.

Volkswagen AG

18.10.

Renault Middle East

19.

Additional Customization

20.

Strategic Recommendations

21.

About Us & Disclaimer

Automotive

PRODUCT OVERVIEW

Product Overview Product Definition As per the Organisation for Economic Co-operation and Development (OECD), passenger car is defined as “A road motor vehicle, other than a motorcycle, intended for the carriage of passengers and designed to seat no more than nine persons (including the driver)”.

Product Classification Passenger Car Vehicle Segment

Engine Displacement Capacity (In CC)

Hatchback

<1200, 1200-1600, >1600

Sedan

<1600,1600-2000,20012400, >2400

MPV

Automotive

1400-1800, >1800

Pickup

1600-2400, >2400

SUV

<1800, 1801-2400, >2400

Fuel Types

• • •

Petrol Diesel Others

• • •

Petrol Diesel Others

• • •

Petrol Diesel Others

• • •

Petrol Diesel Others

• • •

Petrol Diesel Others

Transmission

•

Manual Transmission Automatic Transmission

•

Manual Transmission Automatic Transmission

•

Manual Transmission Automatic Transmission

•

Manual Transmission Automatic Transmission

•

Manual Transmission Automatic Transmission

•

RESEARCH METHODOLOGY

Research Methodology

Market Profiling •In-depth secondary research was conducted to determine top players, overall market size and segmental market size in the Saudi Arabia passenger car market.

Data Collection

Research & Intelligence

Data Filter & Analysis

Actionable Insights

Business Solution

Formulating Questionnaire •In order to conduct industry experts’ interviews, TechSci Research formulated a detailed questionnaire. Developing List of Respondents •List of industry players, distributors, industry specialists was developed.

❑ Identifying Key Opinion Leaders ❑ Questionnaire Design ❑ In-depth Interviews

and

Primary Research

Data Validation

❑ Market Participants

•The data was scrutinized using MS-Excel and statistical tools such as Time Series Analysis, average, etc., to obtain qualitative and quantitative insights about the Saudi Arabia passenger car market. Automotive

❑ Final Conclusion

Company Analysis

❑ Key Strengths ❑ Commercial Vehicle Portfolio

•Data obtained as a result of primary and secondary research was validated through rigorous triangulation. Data Analysis

❑ Market Changing Aspects/Dynamics Desk Research ❑ Government Policies

Data Collection •TechSci Research conducted interviews with industry experts, industry players, for data collection and verification.

❑ Recent Developments

Primary Research ❑ ❑

LinkedIn TechSci Internal Database

Secondary Research ❑ ❑ ❑ ❑ ❑ ❑ ❑

Company Website Company Annual Reports White Paper Study Financial Reports Investor Presentations Regulatory Body Associations

Paid Sources ❑ ❑

Factiva Hoovers

Research Methodology Baseline Methodology: For the study, TechSci Research has gathered information through primary research surveys with leading passenger car companies operating in Saudi Arabia. The market study is led by the organized players of passenger cars. We have also put through an exhaustive search of credible paid databases such as BusinessWeek, Factiva, Hoovers, etc., including our internal database. Our team of analysts has then prudently evaluated all the collected information and presented the same in a chronological order to depict a meaningful and clear picture of the Saudi Arabia passenger car market. While compiling the data, we have also cross-checked all the collected information from multiple sources and data warehouses, to present the most accurate and precise information of the concerned industry.

Sampling Technique: While conducting the study, TechSci Research followed the stratified random sampling technique to shortlist the Key Opinion Leaders (KOLs) in various commercial vehicle companies/dealers & distributors operating in Saudi Arabia. KOLs based out of prominent commercial vehicle companies/dealers & distributors were interviewed to identify the size of Saudi Arabia passenger car market.

Sample Size:

Automotive

KOLs Mid to senior management, sales managers, etc., of passenger car companies/ dealers & distributors

No. of Respondents

Industry Experts

Total

1010

Research Methodology

Market Size Calculation Technique: Primary Research For preparing the Saudi Arabia passenger car market report, bottom-up research methodology has been used, which was later cross validated by using the top-down approach. TechSci Research interviewed senior managers and regional sales managers of the prominent passenger car companies/dealers & distributors using the Delphi

technique for calculating the size of Saudi Arabia passenger car market. Respondents were also asked about the current and future growth rates, market share by passenger car types, etc. All the information gathered was carefully analyzed. Data points which exhibited high deviations from the majority estimates were eliminated as outliers and the remaining refined data points were put together to arrive at the volume data.

Primary Research – Few of the Companies and/or their Dealers Interviewed S. No.

Names of Companies and/or their Dealers Interviewed Company

Distributor

Toyota Motor Corporation

Abdul Latif Jameel Motors

Nissan Motor Co., Ltd.

Khaled Juffali Company and Alissa Auto

Hyundai Motor Company

Mohammed Yousuf Naghi Motors Co., Almajdouie Motors & Wallan Trading Company

KIA Motors corp.

ALJABR Automotive

Automotive

1111

Research Methodology

Secondary Research We also conducted an exhaustive search of credible paid databases such as Factiva, Hoovers, etc., in addition to our internal database. Further analysis of credible publications, white papers, company’s annual reports, investor presentations, news articles, etc., were also analyzed to cross validate the findings derived from primary research.

S. No.

Few of the Secondary Sources

Organisation Internationale des Constructeurs d’Automobiles (OICA)

The Central Department of Statistics and Information of Saudi Arabia

Ministry of Haj & Umra, Saudi Arabia

World Bank

International Monetary Fund (IMF)

Forecasting Technique: The team has developed a forecast based on econometric and judgemental analysis in addition to statistical techniques such as averaging and geometric mean. During the primary research interviews, questions regarding historical sales trend of passenger car market were put forward. Respondents were asked about the current and future growth rates along with market share by commercial vehicle type in Saudi Arabia. In order to forecast passenger car market, following forecast techniques were used: • • •

Time Series Analysis Econometric and Judgmental Analysis Moving Average

Automotive

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Industry Brief 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 USD16.70 billion 2026 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. In 2017, the ban on women driving was uplifted in the Kingdom of Saudi Arabia and since then there is an increase in women drivers, hence the demand is expected to increase from this segment and is susceptible to propel the market in the forecast period as well. The Saudi Arabia passenger car market is majorly dominated by the sedan and SUV car segment owing to better per capita earnings of the consumers in the country. Saudi Arabia passenger car market can be segmented based on vehicle type, fuel type, transmission type, engine capacity and country. 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 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 fuel type the market is majorly contributed by gasoline driven passenger cars due to comparatively low gasoline prices and this trend is susceptible to withstand in the forecast period as well. In the sedan car segment, cars with engine capacity up to 2000cc are anticipated to hold majority shares, but due to increasing demand for cars with higher engine capacities, cars with engine capacity below 2000cc are anticipated to register a slothful growth. Companies across the region are also introducing safer, technologically advanced, and fuel-efficient passenger cars. Cars with automatic transmission account for the majority share in the Saudi Arabia passenger car market on account of ease of driving with stringent traffic rules across the region. 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. Toyota Motor Corporation, Nissan Motor Company, Ltd., Hyundai Motor Company, Mitsubishi Motors Corporation, Kia Corporation, etc., 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 increasing their dealer and distributor network to grab a larger share in the region’s passenger car market. “In 2020, sedan cars accounted for the largest share i.e., 56.00% 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 Indian management consulting firm.

Automotive

Sample Data - Snapshot Saudi Arabia Passenger Car Market Size, By Value (USD Million), By Volume (Thousand Unit), 2016-2026F CAGR 2016-2020 By Value: xx% By Volume: xx%

18,000.00 16,000.00 14,000.00 12,000.00 10,000.00 8,000.00 6,000.00 4,000.00 2,000.00 2016

2017

2018

CAGR 2021E-2026F By Value: xx% By Volume: xx%

2019

2020

2021E

2022F

Value (USD Million)

2023F

2024F

700.00 600.00 500.00 400.00 300.00 200.00 100.00 2025F

2026F

Volume (Thousand Unit)

Saudi Arabia Passenger Car Market Share, By Fuel Type, By Volume, 2016–2026F

2016

2017

2018

2019

2020

2021E

2022F

2023F

2024F

2025F

2026F

Petrol 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% Diesel 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% Others 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% Saudi Arabia Hatchback Car Market Share, By Transmission Type, By Volume, 2016–2026F

2016

2017

2018

2019

2020

2021E

2022F

2023F

2024F

2025F

2026F

Automatic Transmission 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% Manual Transmission Automotive

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Report Name: SAUDI ARABIA PASSENGER CAR MARKET FORECAST AND OPPORTUNITIES 2016 – 2026

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