Saudi Arabia’s Car Imports Surge in 2023, Reflecting Significant Growth
In a remarkable development, Saudi Arabia’s car imports in 2023 reached a staggering 93,199 vehicles, utilizing various transportation modes including land, sea, and air. This marks an impressive nearly 40 percent growth from the previous year.
Kingdom Emerges as Prominent Global Market for Automobiles
Over the past two years, Saudi Arabia has imported a total of more than 160,000 cars, with 66,870 imports recorded in 2022 alone. The Kingdom now stands as one of the largest markets worldwide for automobiles, accounting for more than half of car sales in the Gulf Cooperation Council countries and ranking among the top 20 markets globally.
Top Import Sources and Stringent Quality Standards
Cars imported to Saudi Arabia mainly originated from Japan, India, South Korea, the US, and Thailand. The Vehicle Inspection Unit rigorously inspected 60,473 vehicles in 2023 to uphold the highest technical and safety standards. Additionally, 18,150 energy efficiency certificates were issued for tire products, showcasing a commitment to quality and safety in the Saudi market.
Advancing Sustainable Energy Adoption
Notably, SASO awarded 172 conformity certificates for electric vehicles in 2023, representing a remarkable 465 percent increase from the previous year. This highlights the organization’s pivotal role in promoting sustainable energy adoption. The body also issued 1,505 fuel efficiency cards for new light vehicles, demonstrating a dedication to eco-friendly transportation solutions.
Impact on Saudi Banks and Private Sector
The surge in motor vehicle imports led to a 7.67 percent increase in letters of credit to the private sector in the first 11 months of 2023 compared to the same period the previous year. Saudi banks witnessed settled LCs and received bills totaling SR155.19 billion ($41.38 billion), with the import of motor vehicles contributing significantly to this growth. The import value in this category reached SR39.7 billion, marking a 26.29 percent increase.