Thursday, April 1, 2021

Future Growth of KSA Automotive Industry Outlook: Ken Research

 KSA Aftermarket Service Industry

Organized sector of KSA Automotive Aftermarket service dominated the industry in terms of revenue earned in the market. It majorly comprises of agency repair (dealership led) & branded workshops across the country, along with the unorganized segment, comprising of only independent workshops. The procurement of spare parts also differ for all the entities, with agency repair workshops procuring 100% genuine products along with branded workshops who uses a mix of genuine & refurbished parts. Unorganized sector however also uses fake/counterfeit products as well Aftermarket service industry in KSA have grown by a CAGR of ~8% providing exponential growth in the market with new and innovative business models being harnessed by big workshops and service centers The KSA aftermarket service industry is made up largely of 3 entities, namely Agency repair, which are largely an extended arm of local dealership and provide exclusive care to cars. Branded workshops, operating across KSA with an array of services. These 2 entities together form organized segment of the market, which is largely different from the un-organized segment, which caters to tier 3 & other rural areas. Organizer segment also included other entities like quick lube specialists, car spas and other mobile service providers


Dealerships who lead the market sales, also have extended arms providing car servicing and repair workshops providing various services, they tend to procure genuine OEM spare parts and utilize them mainly. Other players like branded workshops, uses a mix of genuine and re furbished spare parts. The availability of various services like crash repair, mechanical repair, periodic servicing and quick lubes, car spas is also an important criteria for customer loyalty and competition

Domestic market is set to grow at a rate of 8% amidst numerous incentives provided by the government for spare parts manufacturing & usage of digital services by the workshops. Innovative & mobile models are set to take over the largely traditional automotive industry of KSA with increased penetration of smartphones & internet, services will also move on the digital platform

KSA Automotive Leasing & Rental Industry

Rental & Leasing industry in KSA majorly targets expats & tourists. Rental companies have witnessed a major growth in their fleet during 2014-2019, with an exponential growth of ~12% in annual tourism traffic for pilgrim & business activities.

Increasing expat community, driven by attractive job opportunities & a better lifestyle is acting as a main catalysts for growth in leasing industry, along with a boom in construction & other industries, led by public & private enterprises. A upward trending growth in local tourism & increase of ~5 mn internet users in last  year have also contributed in the growth of industry Rental Industry in KSA witnessed a growth of ~4% for the period 2014-2019,helping the market to grow ~2X with the help of a stable average price of renting & addition of ~3 mn new smartphones in the market, enabling effeciency of digitization in the market segment Certain international clients like Budget, AVIS & hertz provide industry leading practice in KSA rental industry, but witness a high level of competition with local & domestic players like Theeb, Al Wefaq, Auto world & more. Furthermore, the report consists of a detailed analysis of the major competing firms in the rental segment of the market with their market share, fleet size, competing parameters, nature of competition & more Leasing industry in KSA grew by 11% for the period of 2014-2019, along with a growth of ~12% in the overall fleet size for 2014-2019. Average leasing price remained largely consistent. It was witnessed that customers usually use debt or other financing to finance their cars & average leasing period amounts to ~3 Years in KSA

The market is largely dominated by local player providing ford leasing services, call Aljazirah, but is met with fierce competition from local & international player.

Furthermore, the report consists of a detailed analysis of the major competing firms in the leasing segment of the market with their market share, fleet size, competing parameters, nature of competition & more The industry is set to witness a growth of 10% in the leasing segment after 2020 as the business activities & tourism will resume & influx of expats begin again in KSA. Project 2030 is also supposed to provide big boost in the industries like construction & public sector amidst development of new & exciting developmental opportunities

Impact of Covid-19 on KSA Automotive Industry

The covid impact on automotive industry of KSA has seen decline in the foot fall across various showrooms of brands, which used to be the major mode of sales, pre covid. We see a shift towards e-commerce in the KSA automotive industry with higher online penetration levels across various segments, but not a major move from physical to online sales.

Various new vehicle maintenance models are also witnessed with varying ownership periods amidst job loss & closing of many offices. Share mobility market also witnessed a decline as people move towards hygienic ways impacting different market segments. Corrective measures taken by various entities & government itself to sustain business & are providing incentive to move towards innovative business models in various industry segments.

Technology Adoption & Trends in KSA Automotive Industry

KSA includes multiple international & international players that provide an array of technology consulting & optimization services with either specific softwares like SAP & Oracles or in house developed specific softwares. Customers across KSA are vary of the usage & integration of softwares. Hence, the usage, level of security, integration with third party & ability to effectively optimize their operations is the top most factor considered, along with cost of the project & duration amidst certain other important factors

KSA was introduced to digital methods of record keeping by the start of 1990s however the mass adoption of Microsoft & other similar tools did into come by the end of the century (Y2K, 2000). ERP solutions was introduced in KSA during the late 2000s as SAP & some other players utilized the market & provided ERP solutions to some big companies who were not hesitant in the usage of such tools The technology trends & developments also witness a major shift towards radical ERP & CRM systems being utilized in the market, majorly by organized segment. Entities operating in the automotive industry of KSA ae able to understand the usage & optimization capabilities of streamlined & efficient operating systems & continue to use different softwares & solutions in addition with customized modules to enhance their operations & customer relationship management efforts.

Key Segments Covered:

KSA Imports & Sales Industry (Distributors & Dealerships)

Import & Export Analysis

Competition Analysis of Major OEM Brands

Future Trends & Developments & Growth Factors

KSA Automotive Aftermarket Spare Parts & Service Industry

Spare parts Industry

Aftermarket Service Industry

Competition Analysis of Major Players via Cross Comparisons & Heat Maps

KSA Automotive Leasing & Rental Industry

KSA Rental Industry (Market Size, Competition & Segmentation)

KSA Leasing Industry (Market Size, Competition & Segmentation)

Impact of Covid-19 on KSA Automotive Industry

Impact of Covid 19 on KSA Automotive Industry

Mobility Industry looks forward to Utilize Digital Platforms

Post Covid KSA Automotive Industry Outlook

Technology Adoption & Usage Trends in KSA Automotive Industry

Overview of Industry

KSA Automotive Technology Trends, Adoption & Recommendations

Key Target Audience

KSA Car Dealerships

KSA Automotive Industry

KSA Automotive Workshops

KSA Spare Parts Retailers

KSA Automotive Logistic Service Providers

KSA Car Rental Players

KSA Car Leasing Players

KSA ERP Service Providers

KSA Technology Consultants

KSA Foreign Relation Ministry

KSA Customs Department

KSA Ports Authority

KSA Automotive Industry

KSA Imports & Export Authority

KSA Hardware Technology Manufacturers

KSA Software Technology Manufacturers

KSA Cloud Storage Providing Enterprises

KSA Public Institutions

Time Period Captured in the Report:

Historical Period: 2014-2019

Forecast Period: 2019-2025

Companies Mentioned:

Importers/Car Dealership

Abdul Latif Jameel Motors

Almajdouie Automotive

Wallan Trading Co.

Mohamed Yousuf Naghi Motors

Haji Husain Alireza & Co.

(Mazda, MAN, Aston Martin)

Nissan Petromin

Manahil International

Aljomaih Automotive Company

Universal Motors Agencies

Kia Al Jabr

Al Yemni Motors

Alissa Universal Motors Co.

Bakhashab Brothers Co.

Alesayi Motor Company

Al Jazirah Vehicles Agency

Juffali Automotive Company

Spare Part Retailers/Wholesalers

Balubaid

Barik International

Babatin Auto Parts

Speero

Juffali Auto Parts Company (JAPCO)

Samaco

M S Almeshri & Bros Co.

AL-OLIAH Auto Spare Parts

Delmon Group of Companies

SNAM

Ubuy

Munif Al Nahdi Group (Mize)

Odiggo

Accidom

Bawazeer Auto Parts

Bin sahib

AHQ Parts

Danya Auto Parts

Rezayat Automotive  

Saudi Parts Center Company (Al Khorayef Group)

Aftermarket Service Providers

Branded Workshops

AutoFix

SAC Motor

Castrol

BEC (Best Engine Centre)

Sheikh Center (SKBMW)

Abu Jihad Car Maintenance Center

Ac Delco Service Centres

Tyre Plus

3M Authorized Centre

Mize

AdinLub

Car Spa

Car Hub

Ezhalha

Petromin Express

Auto Hub

Exxon Mobil

Autoworld

Castrol Branded Workshops

Shell Fastlube

Fuchs One

NAFT

Ziebart

Grease Monkey

Quick Car Service

Morni

Agency Repair

Samaco

United Motors Express Service Lane

Al Jazeera

Renault

Kia Motors

Fast Auto Technic

Mohammed Yousaf Naghi Motors

Porsche

Land Rover

Quick lane

Nissan Petromin

Haji Husain Alireza & Co.

Universal Motors Agencies

Aljomaih Automotive Company Ltd.

Alesayi Motors

Al Yemni Motors

Alissa Universal Motors Co.

Bakhashab Brothers Co

Al Juffali & Brothers Automotive Ltd.

Wallan Hyundai

Un-Organized/ Independent Players

Middle East Auto Services

Carzzone

German Centre

Cartech

Alod Haib

Al-Aruba Sinnaiyah

Saudi Chinese Vehicle Repair

Al Shamel Car Maintenance Center

Al Nafie Car Maintenance Workshop

Alsajow Center for Car Maintenance

Red Car

Saudi Egyptian Center for Car Maintenance

SRT 8

Al Bayan Car Maintenance

Mujahid Garage

1 Check Car Services (One Examination Workshop)

Saudi radiators

Global Auto Maintenance

Mohammed Al- Tkhais Abu Rakan

Anwar Al Mamlaka Center

Quick Cars Service

Best Corner Car Maintenance

American Diamond Specialist Center

Cars electricity and air conditioning

Badr Sentop workshop BST

Grace Monkey (International Company)

Super Service Auto Center

XEOEX

German Centre

AutoGard

Rental & Leasing Industry

Rental Players

Budget rent a car

Theeb rent a car

Al Wefaq rent a car

Autoworld rent a car

Key rent a car

Avis rent a car

Hanco rent a car

Samara rent a car

Hertz rent a car

Autorent a car

Leasing Players

Ford Aljazirah

Budget Rent a Car

Universal Motors

Al Jomaih

Best rent a car

Al Tayyar rent a car

Enterprise rent a car

Hanco rent a car

Theeb rent a car

Shary rent a car

ERP & CRM Providing Technical Consultants

Britehouse

Techedge

Saudi Business Machine

Tyconz

Accenture

Tata Consultancy Services

Tech Mahindra

HCL

Unitrans

NTT Data

Deloitte

CDK Connect

Seidor

Wipro

Key Topics Covered in the Report:

Saudi Arabia Automotive Industry Overview

Saudi Arabia Imports & Sales Industry (Distributors & Dealerships)

Automotive Imports & Sales Industry Ecosystem, KSA

Value Chain Analysis of KSA Automotive Imports & Sales

Annual Automotive Imports Traffic for Major KSA Ports

Analysis of Imported Goods & Major Countries Importing in KSA

Value & Volume of Vehicles Imported, KSA

Segmentation of Imports on the basis of Vehicle Type, KSA

Automotive Vehicle Manufacturing Clusters Analysis, KSA

New Motor Vehicle Sales, KSA

Market Segmentation of Automotive Sales on the basis of Region, KSA

Demographics of KSA Citizens Supporting Automotive Industry, (2019)

Segmentation of Vehicle Sales on the basis of Brands & Vehicle Type, KSA

Market share of International OEMs in New Vehicle Sales, KSA (2019)

Competition Analysis of Automotive Imports & Sales Industry, KSA (2019)

Profiles of Major Dealerships & Distributors

Business Model & Revenue Stream of Importers/Distributors/Dealerships

Trends & Developments in Automotive Vehicle Industry

Future of Imports & Sales

KSA Automotive Aftermarket Spare Parts & Service Industry

KSA Aftermarket Industry Ecosystem

Aftermarket Spare Parts Industry

KSA Aftermarket Service Industry

Future Trends of Aftermarket Spare Parts & Service Industry

KSA Automotive Leasing & Rental Industry

Macroeconomic Overview of the Rental & Leasing Industry

KSA Automotive Leasing (Long Term) Industry

KSA Rental Industry

Future of Leasing & Rental Industry

Impact of Covid-19 on KSA Automotive Industry

Impact of Covid 19 on KSA Automotive Industry

Mobility Industry looks forward to Utilize Digital Platforms

Post Covid KSA Automotive Industry Outlook

Technology Adoption & Usage Trends in KSA Automotive Industry

Overview of Industry

KSA Automotive Technology Trends, Adoption & Recommendations

For more information on the research report, refer to below link:

Automotive Market in KSA

Related Reports:-

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)

Saudi Arabia Automotive & Spare Parts Logistics Market Outlook to 2025: Lifting Of Ban on Female Drivers and Growing Aftermarket for Spare Parts to Influence Market Growth

Saudi Arabia Car Rental and Leasing Market Outlook to 2023- By Business Model (Car Leasing and Car Rental), By Fleet Type (Small Category, Medium Category, SUV, Premium/Luxury) and By End Users (Logistics, FMCG, Oil & Gas, Construction, Government and Others)

Contact Us:

Ken Research

Ankur Gupta, Head Marketing & Communications

Ankur@kenresearch.com

+91-9015378249

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