Accessories sold through dealers at the time of a new vehicle purchase are likely to grow by 35 per cent within the next six years as a result of higher demand for personalised vehicles in Saudi Arabia, a report said.
The docket provides a strategic overview of the KSA automotive accessories aftermarket. Market dynamics, lucrative accessory categories, distribution practices, and customer preferences are also assessed.
On an average, customers are expected to spend SR620($165)-SR630 on accessories when purchasing new vehicles, with wheel rims, window tinting, and electronics accounting for over 50 per cent of such expenses, added the report titled “Auto Accessories Market Outlook in Saudi Arabia (KSA)” from Frost & Sullivan, a growth partnership company.
The auto accessories market in Saudi Arabia is witnessing steady growth bolstered by a growing population and use of personal vehicles due to limited public transportation. Personalisation is quickly becoming a strong differentiator as customers look for ways to make their vehicles stand out. As automotive demand in the region remains weak, accessories become a viable option to boost dealers’ profitability.
“Although alloy wheel rims are expected to remain the top accessory purchased by KSA customers, electronic accessories such as navigation, DVD systems, LED lights and rear parking sensors are becoming increasingly more popular,” said Frost & Sullivan Mobility senior consultant Vitali Bielski.
“At the same time, owners of full-size pickups (eg, Ford F-150, GMC Sierra, etc.) are expected to continue focusing on bedliners, side steps, and tonneau covers.”
Auto accessory recommendations for dealerships and independent channels include:
• Establishing an online presence to educate customers on special offers and range of accessories;
• Sourcing accessories locally to increase bottom line;
• Integrating accessories into the new vehicle sales process;
• Increasing awareness of accessories via in-store displays; and
• Having accessory sales targets as part of overall monthly sales targets for salespeople in dealerships.
“The future development of the KSA new car market is heavily influenced by volatile demand and high levels of uncertainty,” noted Bielski. “To address some of these challenges, market participants should educate customers on the accessories available using new promotional tools such as social media and tablets.” – TradeArabia News Service