Saudi Arabia Automobile Market to be dominated by Passenger Cars through 2027
Rapid technological advancements and high sales of luxury vehicles are expected to drive the demand for the Saudi Arabia automobile market in the forecast period, 2023-2027.
By Region, Competition Forecast & Opportunities, 2027”, the Saudi Arabia automobile market is expected to grow at a steady CAGR in the forecast period, 2023-2027. Saudi Arabia is experiencing economic and social changes, which are improving the living standards of consumers. The economy of the country is majorly dependent on the oil & gas industry. Crown Prince Mohammed bin Salman had launched Vision 2030 reform program to lower the dependence on the oil & gas industry and create new revenue-generating avenues in the country. It has positively impacted the automotive industry and is expected to support the sales and production of automobiles in the coming years. The rise in accidents and favorable government policies have increased the installation of active and passive safety systems in the automobile. Manufacturers are focusing on enhancing the performance of the vehicle and the riding experience of the passengers by introducing new technologies and advancing automotive parts and components. Also, the growing popularity of the shared mobility services and the introduction of connectivity services in the automobile is expected to create lucrative growth opportunities for the Saudi Arabia automobile market players in the forecast period.
However, the huge dependency of the automotive industry on the import of the automobile parts and components may restrain the Saudi Arabia automobile market growth in the forecast period.
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The Saudi Arabia automobile market is segmented into vehicle type, propulsion, transmission, regional distribution, and competitive landscape.
Based on vehicle type, the market is divided into two-wheeler, passenger car, LCV, MCV, and HCV. Currently, the passenger car dominates the market and is expected to maintain its dominance through the next five years. Market players are introducing cost-effective passenger car options to meet the requirements of the customer. Also, the advancements in technology and the introduction of electric and hybrid technology are expected to influence the market demand in the forecast period.
Based on propulsion, the market is divided into ICE and electric. The electric automobile segment is expected to witness the fastest incremental growth in the forecast period. The rise in environmental awareness and the need to lower carbon emissions is increasing the demand for alternative fuel options. Electric vehicles offer a sustainable solution as they do not negatively impact the environment and eliminate the dependency on conventional sources of energy. Also, they have lower running and maintenance costs and zero tailpipe emissions. Electric vehicles are quiet, which is the reason they can reduce noise pollution across the country. Consumers can easily charge their automobiles in the comfort of their homes. The government is providing income tax and financial benefits to the manufacturers and buyers of electric vehicles. Therefore, the advantages offered by electric vehicles and the launch of various electric variants are expected to bolster the demand for electric vehicles in the forecast period.
Based on transmission, the market is bifurcated into manual and automatic. The manual segment is expected to hold the largest market share in the forecast period. They are witnessing high demand as they have lower prices and repair costs. The manual automobile provides better gas mileage and fuel efficiency and is available in a number of variations in the market.Major market players operating in Saudi Arabia automobile market are:
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“The National Industrial Development Center (NIDC) aims to attract 3-to four original equipment manufacturers across the ICE and EV value chain as the Saudi Arabia automobile industry is majorly import-driven. It aims to promote local production, make it 40%, and produce 300,000 vehicles annually by 2030. NIDC is also working on supporting industrialization in the country through loans, tariff exemption, and tax incentives. Favorable government policies and the entry of new players in the automotive is expected to propel the Saudi Arabia automobile market growth till 2027” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.
“Saudi Arabia Automobile Market By Vehicle Type (Two-Wheeler, Passenger Car, LCV, MCV, HCV), By Propulsion (ICE, Electric), By Transmission (Manual, Automatic), By Region, Competition Forecast & Opportunities, 2027”, has evaluated the future growth potential of Saudi Arabia automobile market and provides statistics & 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 Saudi Arabia automobile market.
