The
report titled “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)” provides a comprehensive analysis of the status of the
used car industry in Saudi Arabia. The report covers various aspects including
the current sales volume & gross transaction value, target audience, growth
facilitators, issues & challenges faced by the industry, customer
perception & decision-making parameters and more. Saudi Arabia Used Car
Market report concludes with projections for the future of the industry
including forecasted sales volume & gross transaction value by 2025, future
market segmentations, Covid-19 impact, emerging online used car models,
international case studies and analysts’ take on the future.
Saudi
Arabia Used Car Market Overview and Size
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 ex-pats 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 some of the major growth drivers of the industry. A
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.
Saudi
Arabia Used Car Market Segmentations
By Market
Structure: The industry in Saudi Arabia is largely unorganized
due to the preference of consumers towards peer to peer sales, largely
facilitated by online auto-classified platforms. The organized market comprises
of large authorized brand dealerships as well as multi-brand outlets and
exhibitions.
By
Type of Cars: Sedans were observed to dominate the used car market
on the basis of sales volume as they are economical and suitable for almost all
kinds of buyers. SUVs & crossovers were found to be the second most
preferred types of cars in the country and pick-ups & luxury cars
contributed to the remaining sales.
By
Car Brands: Toyota continues to dominate the used car market in
Saudi Arabia due to the higher preference of the consumers towards the brand
for its reliability and low maintenance. Also, the easy availability of spare
parts and the higher residual value of Toyota cars contributes to higher sales.
Hyundai contributed to the second-highest sales volume in 2019.
By
Age of Vehicle: Three to five-year-old used
cars were observed to dominate the used car sales in the country in 2019. As
the installment period for cars purchased on finance is around 3-5 years after
which people usually prefer to sell off their cars. 1-3-year-old vehicles
contributed to the second-highest sales volume as a large number of these cars
found their way to the used car market when car rental companies’ de-fleet
their existing fleet.
By
Kilometers Driven: A large proportion of the
used cars sold in 2019 belonged to the category of 80,000-120,000 kilometers.
Cars with a mileage of 50,000-80,000 kilometers were also largely preferred by
the consumers due to their nearly new look and feel and are also economical.
By
Regions: The central region including the capital of Riyadh
accounted for the highest number of used car sales in the country in 2019 due
to the concentration of the young working population in the region. The western
region contributed the second-highest used car sales. Most of the major
authorized dealers have multiple showrooms in these regions.
By
Age Group of Buyers: The majority of the buyers in the used car market
were observed to be in the age group 30-60 years. Many young working
professionals, expatriates, families owning multiple cars belong to this age group.
The demand for used cars among the age group of 18-30 years is also increasing
with increasing disposable income and job opportunities.
By
Type of Sourcing: Majority of the used cars
sold in the country in 2019 was analyzed to be sourced from car-rental/leasing
companies or used car auctions in the country. Directly purchasing cars from
the consumer through buy-sell/park-sell used car imports and trade-ins were
identified to be other major mediums for used car sourcing in the market.
Saudi
Arabia Organized Market Segmentation
By
Sales Channel: The multi-brand outlets/exhibitions contributed to the
majority of the sales through the organized channel in the country. These
outlets are spread all across the country and are a convenient way of buying a
used car with a large variety of choices at the disposal of the consumer.
Saudi
Arabia Unorganized Market Segmentation
By
Sales Channel: Majority of the sales through the unorganized channel
were identified to have taken place directly between consumers or C2C
transactions. The rise of online platforms has made C2C transactions more
convenient and the easy availability of finance in peer to peer transactions is
also a contributing factor.
Competitive
Landscape of Saudi Arabia Market
The
industry is highly fragmented and competitive with 2,200+ dealerships operating
in the market. Many brands have a certified pre-owned car program in place in
the country. Amongst the brand authorized dealerships, the top 6 players
including Abdul Latif Jameel Motors, Aljomaih Automotive Company, Al Jazirah
Vehicles, Universal Motors & Gulf Advantage are analyzed to account for
almost half of the used car sales through the authorized
dealerships. These players compete on the basis of parameters such
as geographical presence, value-added services offered, financing option,
after-sales services offered, dealership network, and more.
Saudi
Arabia Used Car Market Future Outlook & Projections
The
used car industry is expected to recover from the Covid-19 pandemic and witness
growth by 2025. The increasing demand from smaller cities such as Jazan, Arar
among others is expected to drive the growth of the industry. The growing
traction towards online platforms is expected to compel dealerships to expand
their presence online. Online platforms are expected to leverage latest
technologies such as artificial intelligence & virtual reality to enhance
the user browsing experience. The overall used to new car sales ratio in the
country is also expected to improve in the future.
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 Segmentations (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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