Passenger Cars - Saudi Arabia

Saudi Arabia

Revenue in the Passenger Cars market is projected to reach US$12.2bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 1.03%, resulting in a projected market volume of US$12.7bn by 2028.
The market's largest segment is SUVs with a projected market volume of US$5.8bn in 2024.
Passenger Cars market unit sales are expected to reach 483.20k vehicles in 2028.
The volume weighted average price of Passenger Cars market is expected to amount to US$26.06k in 2024.
With a vehicle unit sales share of 30.8% in 2024, Toyota is expected to have one of the highest market share in the selected region.
The value market share of the make Toyota in the selected region is expected to stand at 29.9% in 2024.
From an international perspective it is shown that the most revenue will be generated in the United States (US$558bn in 2024).

Key regions: United States, Germany, Europe, China, India

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Analyst Opinion

The Passenger Cars market in Saudi Arabia is experiencing significant growth and development.

Customer preferences: Saudi Arabian customers have shown a strong preference for luxury and high-performance vehicles. This is reflected in the increasing demand for premium brands such as Mercedes-Benz, BMW, and Audi. Customers in Saudi Arabia also value spaciousness and comfort, as they often use their vehicles for long-distance travel. SUVs and sedans are particularly popular among Saudi Arabian customers due to their size and comfort.

Trends in the market: One of the key trends in the Saudi Arabian Passenger Cars market is the growing demand for electric and hybrid vehicles. This trend is driven by both environmental concerns and government initiatives to reduce carbon emissions. The Saudi Arabian government has implemented policies and incentives to encourage the adoption of electric and hybrid vehicles, including subsidies and tax exemptions. As a result, more customers are opting for electric and hybrid vehicles, leading to an increase in the market share of these vehicles. Another trend in the market is the rise of car-sharing and ride-hailing services. Companies like Uber and Careem have gained popularity in Saudi Arabia, providing convenient and affordable transportation options for customers. This trend has led to a shift in customer behavior, with some customers opting to use these services instead of owning a personal vehicle. However, it is important to note that car ownership still remains high in Saudi Arabia, especially among affluent individuals.

Local special circumstances: Saudi Arabia has a unique cultural and social landscape that impacts the Passenger Cars market. For example, women were only granted the right to drive in 2018, which has led to an increase in the number of female drivers and a subsequent rise in car sales. This has created new opportunities for automakers and dealerships to target female customers and offer vehicles that cater to their specific needs and preferences.

Underlying macroeconomic factors: The growth and development of the Passenger Cars market in Saudi Arabia can be attributed to several underlying macroeconomic factors. The country has a high per capita income and a strong economy, which has led to increased consumer spending power. Additionally, the population of Saudi Arabia is relatively young, with a large proportion of the population entering the workforce and achieving financial independence. This has contributed to the growing demand for Passenger Cars as a symbol of status and mobility. Furthermore, the Saudi Arabian government has implemented economic reforms and diversification efforts, aimed at reducing the country's reliance on oil and promoting other sectors such as tourism and entertainment. These reforms have attracted foreign investment and boosted economic growth, creating a favorable business environment for automakers and dealerships. In conclusion, the Passenger Cars market in Saudi Arabia is experiencing growth and development driven by customer preferences for luxury and high-performance vehicles, the increasing demand for electric and hybrid vehicles, the rise of car-sharing and ride-hailing services, and unique local circumstances such as the recent legalization of women driving. These trends are supported by underlying macroeconomic factors such as high per capita income, a strong economy, and government reforms.

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).