Large Cars - Saudi Arabia

Saudi Arabia

Revenue in the Large Cars market is projected to reach US$1,631m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 0.97%, resulting in a projected market volume of US$1,695m by 2028.
Large Cars market unit sales are expected to reach 66.0k vehicles in 2028.
The volume weighted average price of Large Cars market in 2024 is expected to amount to US$25k.
From an international perspective it is shown that the most revenue will be generated in China (US$106,900m in 2024).

Key regions: China, Europe, Worldwide, United States, United Kingdom

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Analyst Opinion

The Large Cars market in Saudi Arabia has been experiencing significant growth in recent years. Customer preferences have shifted towards larger vehicles due to a variety of reasons.

Additionally, there are several trends in the market that have contributed to this growth. Local special circumstances, such as the country's unique driving culture, have also played a role in the development of the Large Cars market. Finally, underlying macroeconomic factors have provided a favorable environment for the growth of this market.

Customer preferences in Saudi Arabia have shifted towards larger cars for several reasons. Firstly, there is a cultural preference for spacious and luxurious vehicles in the country. Large cars are seen as a status symbol and are often associated with wealth and success.

Additionally, the harsh desert climate in Saudi Arabia makes larger cars more practical and comfortable for long journeys. Customers also value safety and reliability, which are often associated with larger vehicles. There are several trends in the Large Cars market that have contributed to its growth in Saudi Arabia.

Firstly, there has been an increase in the number of SUVs and crossovers available in the market. These vehicles offer the spaciousness and versatility that customers in Saudi Arabia are looking for. Additionally, there has been a trend towards more fuel-efficient large cars, as customers are becoming more conscious of their environmental impact.

This has led to the development of hybrid and electric large cars in the market. Local special circumstances in Saudi Arabia have also played a role in the development of the Large Cars market. The country has a unique driving culture, with long distances between cities and a preference for off-road driving.

This has led to a demand for large cars that can handle these conditions. Additionally, the government has implemented policies to promote the local automotive industry, which has led to the production of large cars in the country. Underlying macroeconomic factors have provided a favorable environment for the growth of the Large Cars market in Saudi Arabia.

The country has a strong economy and a high disposable income, which has allowed customers to afford larger and more expensive vehicles. Additionally, low oil prices have made fuel more affordable, which has encouraged customers to purchase larger cars that are typically less fuel-efficient. In conclusion, the Large Cars market in Saudi Arabia has experienced significant growth due to changing customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

As customers continue to value spaciousness, luxury, and safety, the market is expected to continue growing in the coming years.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of new passenger cars. Data on the specifications of the sold vehicles is based on the base models of the respective makes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use company reports and websites, vehicle registries, car dealers, and environment agencies among other sources. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and car stock per capita. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, we use the ARIMA model for the Passenger Cars market. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).