Rising online presence of used car players, lack of original manufacturing facilities and expensive importation of automobiles is driving Used Car Market in KSA

Saudi Arabia News

KSA Used Commercial Vehicles Market Overview

New sales and Service Channels: The increasing adoption of mobile servicing, workforce hygiene, shared mobility, contactless services, e-commerce and vehicle pick-up has boosted demand for disinfection, cleaning and car wash services. Customer preference for auto servicing is shifting towards mobile platforms, which has resulted in the emergence of mobile app aggregators that connect users with service providers of roadside assistance, car wash and parts replacement.

Trends and Recent Development's: The online platforms as well as dealerships are expanding their presence online and planning to implement latest technologies such as 360 degrees 3D view of the interiors & exteriors, artificial intelligence to leverage consumer behavioural insights and more in order to create a better user browsing experience. The Saudi Traffic Department introduced the facility for online transfer of ownership for sale of vehicles amidst the Covid-19 lockdown to enable transfer without requiring a periodic technical inspection which pushed the market.

Localized production: Most vehicles and parts sold in Saudi Arabia are majorly imported, and local manufacturing is limited to small auto parts and truck assembly. The government is keen on creating a domestic automotive industry and has encouraged global vehicle manufacturers to establish local operations. This would both lead to local job creation, transfer of technologies and skills and enhance the auto parts manufacturing supply chain in the country.

Lack of Regulations & Mismatched Pricing: The industry lacks a regulatory body & stringent regulation concerning the buying & selling of used cars, engine requirements or verification. The lack of standards and regulations governing the industry results in lower consumer confidence while buying pre-owned cars.

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 SectorOEM Certified DealersMulti-Brand Non-Franchise DealershipsAuction CompaniesUnorganized SectorC2CLocal DealersBy Type of CarSedan and HatchbackSuvPickup trucksLuxuryBy ManufacturerToyotaHyundaiFordChevroletGMCNissanKiaBy Kms Driven<50,00050,000-80,00080,000-150,000>150,000By Age of Vehicle<1 year1-2 years3-5 years>5 yearsBy CityNorthernSouthernCentralWesternEasternBy Age of the Consumer: 18-3435-5455+By Age of the Consumer: FemaleMale

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Key Target Audience

Used Car CompaniesOEMsMulti-BrandsOnline Used Car PortalsUsed Car Financing CompaniesGovernment BodiesInvestors & Venture Capital FirmsUsed Car DealershipsUsed Car IndustryUsed Car Manufacturing CompaniesUsed Car DistributorsUsed Car Auction HousesUsed Car Associations

Time Period Captured in the Report:

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

Companies Covered:

Online Auto-Classified

ExpatriatesExpatHarajOpensooqMourjanYallaMotorsMotorySellAnyCarSyarahCarsSwitchCarnabOLXSaudisaleHalta2ee

Second Hand Car Distributors Saudi Arabia

Major Auction Companies

Abdulla Fouad Company of Public Auctions Car SalesSultan Nasser Auctioneers EstAutoWorld (AKA Al Jazira Equipment Co.Ltd)Saud Qahtani Auction CompanyMotorySyarahMozayadabudgetsaudiMazadhala

Major Finance Institution

Alinma BankRiyad BankANB Leasing BankEmirates NBD Auto Lease BankAl Rajhi BankNational Commercial BankSaudi Investment BankBank AlbiladAl YusrTaajeer Finance CompanyAbdul Latif JameelAl-Tayseer Car Finance

Major Finance Institution

Abdul Latif JameelAljomaih Automotive CompanyAl Jazirah VehicleMohamed Yousuf NaghiUnited Motors CompanyUniversal Motors AgenciesSAMACO AutomotivePetromin Stellantis

Multi Brands Used Car Platforms in Saudi Arabia

Key Topics Covered in the Report

KSA Automotive Market OverviewKSA Used Car Market OverviewKSA Online E-commerce Used Car MarketMarket EcosystemValue chain AnalysisCustomer Buying Journey in KSADecision Making Parameters for CustomersOffline and Online Business ModelsDetailed Analysis on KSA Used Car Market (Market Size, 2021; Market Structure; Market Segmentations; Competition; Future Market Size, 2026; Future Trends and the Way ForwardSnapshot on Online Used Car Platforms in KSASnapshot of Used Car Auction House in KSASnapshot of Used Car Finance Market in KSABusiness Opportunity (Customer Profile Analysis)Recommendations (Sales and Marketing Strategies, Positioning Strategies, Business Framework)

Related Reports

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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

[email protected]

+91-9015378249

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