Tuesday, October 11, 2022

Saudi Arabia Used Car Market Research Report to 2026: Ken Research

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How is used car Market Positioned in KSA?

Overview:

The Used Car Market in KSA has seen significant growth over the years supported by the increase in millennials population in the country along with the entry of emergent players into the market. The rising trend in used car over new cars indicates the buyer preference of purchasing used cars.

Majority of customers prefer used cars of average age, with more kilometers driven as used car at that segment offers attractive and affordable options with Sedan & Hatchback being the major choice by type of car.

Car dealers are emphasizing on providing integrated user-friendly platforms to ease the buyer’s journey of used cars. These trends and developments are changing the used car industry on a positive note with promising future growth.

The Used Car Market in KSA are segmented on the basis of total number of used car units sold with a CAGR of ~% over the period 2016-2021 with total revenue generated ~% in SAR Mn.


KSA Used Car Market Overview and Segmentation

KSA Used Car Market has grown at an increasing growth rate over the period 2017-2021 with ~% CAGR, supported by the opportunities like digital transformation, and growing trend of upgrading vehicles.

Market Segmentations:

By Market Structure: Market is dominated by unorganized dealers with majority of the cars sold in 2021 due to affordable price range.

By Unorganized Sector:

KSA used car market is equally shared by C2C and Local Dealerships as used cars are cheaper on these platforms

By Organized Sector:

The organized sectors of used car market is dominated by the Multi Brand Outlets/ Exhibitions because an individual choose to go to multi brand if they are not sure about the type of purchase.

By Mode of selling- organized:

The market is overpowered by Offline mode of selling as customers choose to walk in stores to see the car conditions and make a purchase.

By Brand: The market is conquered by Toyota brand followed by Hyundai. Toyota and Hyundai are mostly preferred brands owing to the lower depreciation rate and lower maintenance costs.

By Age of Car:

Used Car with 3-5 years dominate the market as majority of the customers prefer cars of 3-5 years old because on an average, people in KSA change cars once every 3 years

By Kilometres Driven:

The market is dominated by 80,000-1, 50,000 kms driven as consumers prefer used car with more kilometres driven at the same time maintained in good condition at attractive price.

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Competition Landscape in KSA used car Market

The used car market in KSA is currently in Growth Stage with 2,500+ dealerships (organized as well as unorganized) operational in the industry. The competition in KSA used car market was observed to be highly fragmented market with various OEM certified, Brands Company authorized dealerships, multi-brand outlets in the industry.

Abdul Latif Jameel – Toyota, AlJomaih Automotive Company and Al Jazirah Vehicles Agencies Co. Ltd. lead the Used car market in KSA other players include Mohamed Yousuf Naghi, United Motors Company, UMA- Universal Motors Agencies (Altawkilat), SAMACO Automotive, Petromin Stellantis. Key parameters include Geographical presence, no of listings, brand availability, warranty period, after sale services, value added services and financing options

KSA used car market Future Outlook and Projections

The KSA Used Car Market is expected to grow at a double digit ~% CAGR on the basis of Revenue and ~% on the basis of Sales Volume in Units. Factors like fast increasing disposable income per household, greater supply in the market, and a move towards organized and transparent trade will drive the used-car market where growth is further supported by manufacturer’s investments in expanding the network of used cars dealers, building the brand and enabling customers to choose this option.

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

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

Yalla Motors

Motor

SellAnyCar

Syarah

Cars Switch

Carnab

OLX

Saudisale

Halta2ee

Second Hand Car Distributors Saudi Arabia

Major Auction Companies

Abdulla Fouad Company of Public Auctions Car Sales

Sultan Nasser Auctioneers EST

Auto World (AKA Al Jazira Equipment Co.Ltd)

Saud Qahtani Auction Company

Motory

Syarah

Mozayada

Budget Saudi

Mazadhala

Major Finance Institution

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

Multi Brands Used Car Platforms in Saudi Arabia

Key Topics Covered in the Report

KSA Automotive Market Overview

KSA Used Car Market Overview

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)

For More Information on the Research Report, Refer to Below Link:

Saudi Arabia Used Car Market: Ken Research

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

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