(MENAFN - Techsci Research) Increasing women drivers coupled with rising per capita spending of the consumers is driving the Saudi Arabia passenger car market through 2026.
According to TechSci Research report, “Saudi Arabia Passenger Car Market By Vehicle Type (Hatchback, Sedan, MPV, Pickup & SUV), By Fuel Type (Petrol, Diesel & Others), By Transmission Type (Manual Transmission & Automatic Transmission), Competition Forecast & Opportunities, 2016-2026”, Saudi Arabia passenger car market is estimated to reach USD17.64 billion in 2026 from USD11.33 billion in 2020, and is projected to advance with a CAGR of 6.25% in terms of value. Growth in the passenger car market is driven by expanding road infrastructure and increasing per capita spending of the people in the country. Removal of ban and growing preference for women drivers has uplifted the passenger car market in Saudi Arabia. Changes in the government norms for females driving automotive vehicles after decades has resulted in the growth of women drivers. Moreover, opting for self-driving gives many women a sense of empowerment. Many women are hitting Saudi roads with four-wheelers and several women with foreign licenses have already obtained Saudi driving licenses which in turn is further going to boost the passenger car market in Saudi Arabia.
Browse more than 75 market data Figures and 4 data tables spread through 145 Pages and an in-depth TOC on "Saudi Arabia Passenger Car Market"
Saudi Arabia passenger car market can be segmented based on vehicle type, fuel type, transmission type, and company. In terms of vehicle type, the sedan car segment accounts for the largest share but due to increasing traffic congestion and shortage of parking space by daily commuters, this segment is anticipated to lose the market share. Whereas, the SUV segment is expected to grow at an impressive rate in the forecast period owing to the growing demand for cars with higher engine capacity and off-roading capabilities. Based on transmission type, the market is categorized into automatic transmission and manual transmission. Automatic transmission is more popular in the country owing to stringent traffic rules in Saudi Arabia, coupled up with increase in sales of premium cars owing to the rise in consumer spending. Lifting up of the ban on women driving has resulted in growth of automatic cars sales in the country. In 2020, the market share of automatic passenger cars accounted for over 85% in terms of volume. Due to the above-mentioned factors, demand of automatic transmission is growing compared to the complicated manual transmission.
In the year 2020, to prevent the spread of COVID-19, the government implemented lockdown which impacted international trade as well as domestic sales. According to TechSci Research’s estimates, the market suffered a decline of 13.88% in terms of volume. According to the Saudi Arabia’s General Authority of Statistics, the imports declined by 11.9% in Q1 2020 as compared to Q1 2019 and a further decline of 24.2% was witnessed in Q2 2020 as compared to Q2 2019. This decline left a remarkable depreciation in the market, but the market is currently reviving and is set to overcome the descent in 2021-2022 period owing to the government’s stimulus for economic revival and unlocking international trades and investments. However, after facing a degrowth in the import and export of automotive sector in 2020, the market has started reviving and is getting back to the normal condition, due to reoperations of the manufacturing plants and import. This is further anticipated to increase the sales of passenger cars in Saudi Arabia. People are also interested in purchasing the upgraded version of previously available passenger car models which are coming with technologically advanced features.
Toyota Motor Corporation, Nissan Motor Company, Ltd., Hyundai Motor Company, Kia Corporation, Mazda Saudi Arabia, General Motors Co., Ford Middle East, Isuzu Motors Saudi Arabia Co. Ltd., Volkswagen AG, and Renault Middle East are among some of the leading players operating in the Saudi Arabia passenger car market. Apart from these companies, other passenger car manufacturers are also increasing their marketing activities and enriching product portfolio in the region to increase their customer outreach. Major companies in the Saudi Arabia passenger car market industry are also focusing on developing a robust dealer and distributor network to gain competitive edge.
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“In 2020, sedan cars accounted for the largest share, i.e., 56% in Saudi Arabia passenger car market. The vehicle type is expected to maintain its dominance over the next five years as well. However, hatchback cars are observed to grow rapidly owing to an increase in the service sector and daily commutation purposes. Increase in partnerships with local dealers and distributors and expanding per capita income in the country is boosting demand for passenger cars in Saudi Arabia.”, said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.
“Saudi Arabia Passenger Car Market By Vehicle Type (Hatchback, Sedan, MPV, Pickup & SUV), By Fuel Type (Petrol, Diesel & Others), By Transmission Type (Manual Transmission & Automatic Transmission), Competition Forecast & Opportunities, 2016-2026” has evaluated the future growth potential of Saudi Arabia passenger car market and provides statistics and 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 the Saudi Arabia passenger car market.
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