Tuesday, September 13, 2022

Saudi Arabia Used Car Market is expected to generate GTV of worth SAR ~125.0 Bn in 2026F owing to Increasing Prices of New Cars with the Tripling of VAT rate and Shifting Preferences towards Online Platforms driving Used Car Sales: Ken Research

Key Findings

  • Expansion in internet services (~98% internet penetration in 2021) coupled with increasing number of women drivers have collectively given a boost to development of Used Car industry in KSA.
  • Number of used car sold in KSA increased from 2021 to 2026, owing to KSA’s increasing disposable income, internet infrastructure, increased online presence of used car dealers and advancement in technology is going the drive the market in the future.

Saudi Arabia Used Car Market Growth

Growth of Online Platforms: The last decade has witnessed the entry of various online auto classified platforms in the country such as Carnab and Motary. The internet penetration in the Kingdom stood at ~98% in January 2021, 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.

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, 2020 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. Sale of Used Cars expected to increase mainly from tier 2 and 3 cities as consumers prefer to have their own vehicle as compared to travelling in Public Transport System. 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 2026F- Driven by Boom in Online Platforms and Increase in Internet and Smartphone Penetration observed that post pandemic, Saudi Arabia will be in a growth phase in the used car market in Middle East region. Moreover, the rise in the online platforms and increasing penetration of internet has resulted in higher demand of used cars through online platforms in the country. Therefore, industry is expected to demonstrate strong growth in the future led by growth of online used car platforms that provide convenience to both buyers and sellers and makes the entire process smoother. The Saudi Arabia Used Car Market is expected to grow at a CAGR of 10.2% on the basis of GTV over the forecast period 2021-2026F.

KSA Used Car Market

By Market Structure

  • Organized Sector
  • OEM Certified Dealers
  • Multi-Brand Non-Franchise Dealerships
  • Auction Companies
  • Unorganized Sector
  • C2C
  • Local Dealers
  • By Type of Car
  • Sedan and Hatchback
  • Suv
  • Pickup trucks
  • Luxury
  • By Manufacturer
  • Toyota
  • Hyundai
  • Ford
  • Chevrolet
  • GMC
  • Nissan
  • Kia
  • By Kms Driven
  • <50,000
  • 50,000-80,000
  • 80,000-150,000
  • >150,000
  • By Age of Vehicle
  • <1 year
  • 1-2 years
  • 3-5 years
  • >5 years
  • By City
  • Northern
  • Southern
  • Central
  • Western
  • Eastern
  • By Age of the Consumer:
  • 18-34
  • 35-54
  • 55+
  • By Age of the Consumer:
  • Female
  • Male

Request for Free Sample Report @ https://www.kenresearch.com/sample-report.php?Frmdetails=NTg4ODYy

Key Target Audience

  • Used Car Companies
  • OEMs
  • Multi-Brands
  • Online Used Car Portals
  • Used Car Financing Companies
  • Government Bodies
  • Investors & Venture Capital Firms
  • Used Car Dealerships
  • Used Car Industry
  • Used Car Manufacturing Companies
  • Used Car Distributors
  • Used Car Auction Houses
  • Used Car Associations

Time Period Captured in the Report:

  • Historical Year: 2017–2021
  • Base Year: 2021
  • Forecast Period: 2021–2026F

Companies Covered:

Online Auto-Classified

  • Expatriates
  • Expat
  • Haraj
  • Opensooq
  • Mourjan
  • YallaMotors
  • Motory
  • SellAnyCar
  • Syarah
  • CarsSwitch
  • Carnab
  • OLX
  • Saudisale
  • Halta2ee

Major Auction Companies

  • Abdulla Fouad Company of Public Auctions Car Sales
  • Sultan Nasser Auctioneers Est
  • AutoWorld (AKA Al Jazira Equipment Co.Ltd)
  • Saud Qahtani Auction Company
  • Motory
  • Syarah
  • Mozayada
  • budgetsaudi
  • Mazadhala

KSA Used Car Market Finance Companies

  • Alinma Bank
  • Riyad Bank
  • ANB Leasing Bank
  • Emirates NBD Auto Lease Bank
  • Al Rajhi Bank
  • National Commercial Bank
  • Saudi Investment Bank
  • Bank Albilad
  • Al Yusr
  • Taajeer Finance Company
  • Abdul Latif Jameel
  • Al-Tayseer Car Finance

Major Finance Institution

  • Abdul Latif Jameel
  • Aljomaih Automotive Company
  • Al Jazirah Vehicle
  • Mohamed Yousuf Naghi
  • United Motors Company
  • Universal Motors Agencies
  • SAMACO Automotive
  • Petromin Stellantis

Key Topics Covered in the Report

  • KSA Automotive Market Overview
  • KSA Used Car Market Overview
  • Second Hand Car Startups Companies in KSA
  • KSA Online E-commerce Used Car Market
  • Market Ecosystem
  • Value chain Analysis
  • Customer Buying Journey in KSA
  • Decision Making Parameters for Customers
  • Offline and Online Business Models
  • Detailed Analysis on KSA Used Car Market (Market Size, 2021; Market Structure; Market Segmentations; Competition; Future Market Size, 2026; Future Trends and the Way Forward
  • Snapshot on Online Used Car Platforms in KSA
  • Snapshot of Used Car Auction House in KSA
  • Snapshot of Used Car Finance Market in KSA
  • Business Opportunity (Customer Profile Analysis)
  • Recommendations (Sales and Marketing Strategies, Positioning Strategies, Business Framework)

Related Reports

Egypt Used Car Market Outlook To 2026 – Driven By Shift In Consumer Demand Along With Growth Of Online Used Car Platforms And Availability Of Financing Options

Philippines Used Car Market Outlook To 2026 (Third Edition): Driven By The Pandemic Incited New Opportunities For Used Car Dealers And Increased Penetration In The Online Space For Used Car Transactions

Vietnam Used Car Market Outlook To 2026 (Second Edition): Driven By Growing Disposable Income And Shifting Consumer Preference From Two-Wheelers To Four-Wheelers

Contact Us:-

Ken Research

Ankur Gupta, Head Marketing & Communications

support@kenresearch.com

+91-9015378249

No comments:

Post a Comment