Saudi auto sales to hit over $18 billion
Riyadh, August 30, 2010
Automotive sales in Saudi Arabia is expected to reach over SR69.4 billion ($18.3 billion) this year amid increasing lending facilities as car loans account for up to 70 per cent of car sales, according to a report.
The Kingdom will also witness a 30 per cent growth in the number of vehicles sold from 676,000 to 880,000 within the next three years, said a recent BMI report.
A factor in the robust market growth is increased availability of lending facilities, with car loans expected to account for up to 70 per cent of car sales, up from 50 per cent, said Kamil Al Jawhari, project manager of Riyadh Motor Show 2010 - The 28th International Exhibition for Motor Vehicles - at Riyadh Exhibitions Company.
The event will be held concurrently with Saudi Autoshop 2010 – The 14th International Exhibition for Auto Repair Equipment, Tools, Parts and Accessories, from December 5 to 9 at the Riyadh International Convention & Exhibition Centre.
'The favourable economic conditions have helped consolidate Saudi Arabia's reputation as a highly attractive automotive market,' Al Jawhari remarked.
According to him, several factors contributed to the encouraging auto sales growth in 2010, including the imposed restrictions on the age of imported used vehicles and the population growth in the country, which has helped spark the increase in demand for vehicles and auto parts and services.
'In addition, the local weather condition, which can be harsh on vehicles, has also been a factor in the steady demand for auto maintenance services,' he said.
Taking advantage of the industry's robust growth forecast, Riyadh Motor Show and Saudi Autoshop will showcase the latest models, accessories and specialised automotive services from leading international brands, Al Jawhari noted.
Riyadh Motor Show will feature the latest models of passenger cars, station wagons, Sports Utility Vehicles (SUV), pick-up trucks, motorcycles, Special Purpose Vehicles, and 4x4 vehicles. It will also include automobile financing and insurance services.
Saudi Autoshop, he said, will showcase the latest automobile accessories and repair service equipment; gas station equipment; automobile parts; tires, exhausts and batteries; and automobile care products.
Both the events are expected to attract over 85,000 visitors from all over the world, he stated.
Industry experts believe Saudi Arabia will remain generally impervious to the effects of the global downturn as a range of demographic factors and the country's financial stability help cushion any negative impact on the automotive sector.
'Factors such as strong population growth of up to 3 per cent annually, high disposable income, low tariffs on imported cars and low fuel cost are boosting the automotive sector's growth prospects, even as up to 60 per cent of the country's population comprise the 16 to 64 age bracket, which is within the industry's market range,' Al Jawhari added.-TradeArabia News Service