Saudi Arabia Leads the Way in the Automotive Market
The automotive market in Saudi Arabia is booming, with the Kingdom dominating over half of the Gulf Cooperation Council car sales and securing a spot among the top 20 global markets.
In 2023, Saudi Arabia imported 93,300 cars, a significant increase from the previous year’s 66,900, according to Hamoud Al-Harbi, spokesperson for the Zakat, Tax and Customs Authority. The total number of cars imported in 2022 and 2023 reached 160,000, with major contributors including Japan, India, South Korea, the US, and Thailand.
Despite the impressive numbers, questions remain about consumer preferences, purchase factors, and the role of organizations like the National Academy of Vehicles and Cars and the Automotive Manufacturers Association in line with Vision 2030.
Driven by Consumer Preferences
Consumer preferences in Saudi Arabia are a mix of practicality and lifestyle aspirations. Aly Hefny, show manager at Automechanika Riyadh, highlights the demand for robust vehicles that can navigate the nation’s varied terrain and climatic conditions.
Saudi consumers prioritize comfort, reliability, and status in their vehicle choices, while also considering environmental impact and technological advancements, such as electric and hybrid vehicles.
Navigating Purchase Factors
A survey by Bain & Co. reveals that running costs, including fuel and maintenance, are key considerations for Saudi buyers, especially among the younger demographic. Electric vehicle enthusiasts prioritize charging infrastructure over driving range and speed.
Vehicle preferences vary across age groups, with SUVs preferred by Saudis aged 35 to 65 and sedans favored by the 25 to 34 age group. Convertibles, coupes, and hatchbacks are more popular among female Saudis.
Steering Industry Vision
The National Automotive and Vehicles Academy and the Automotive Manufacturers Association play crucial roles in the Kingdom’s automotive industry. NAVA focuses on nurturing skilled talent, aligning with Vision 2030’s emphasis on human capital, while the AMA advocates for regulatory coherence and industry growth.
Collaboration between industry stakeholders and government institutions is key to propelling Saudi Arabia toward a future of mobility driven by efficiency and environmental stewardship.