Saudi Arabia Used Car Market revenue size is projected to grow at a CAGR of 9.3% during 2024-2030

On the basis of ownership, the private sellers segment held the majority of revenue share in Saudi Arabia Used Car Market – 6Wresearch

By ownership, Private sellers held the largest revenue share in the Saudi Arabian used car market, primarily due to their higher frequency of sales compared to rental and leasing services. Additionally, expatriates, who often have short-term contracts in Saudi Arabia, contribute to the market by frequently selling their vehicles when their contracts end.

According to 6Wresearch, Saudi Arabia Used Car Market revenue size is projected to grow at a CAGR of 9.3% during 2024-2030. Changing consumer behaviour, influenced by factors like VAT increases, the rise of online platforms, and a younger demographic with lower incomes, is expected to drive sustained growth in the used car market in Saudi Arabia in the coming years, with a surge in online transactions and a steady turnover of inventory from both local and expatriate consumers. The rising number of female drivers, coupled with the expected surge of an additional 3 million new private license holders by 2025 and the projected growth of the expatriate population to around 25 million by 2030, is contributing significantly to the positive momentum in the sales of used cars in the country.

Rapid urbanization in Saudi Arabia, expected to reach 97.6% by 2030, coupled with a consistent increase in GDP per capita, is driving a growing demand for viable transportation options, particularly used cars, as individuals with enhanced purchasing power seek accessible and affordable mobility solutions. Saudi Arabia's push towards sustainable public transportation, including the introduction of electric buses and ambitious metro and bus projects, poses a potential constraint on the used car market as the nation aims to increase public transport usage from 2% to 15% by 2030.

According to Shivankar, Research Manager, 6Wresearch, C2C transactions dominate the Saudi used car market over online marketplaces. This segment is primarily driven by several factors including the ease of transaction, the government’s VAT hike, user control, personal connections, pricing considerations, knowledge of the seller, guarantee, warranty, and mileage of the car.

The Saudi Arabia Used Car Market (2024-2030) report provides an in-depth analysis with 35 figures and 19 tables, covered in 137 pages. The report comprehensively covers the market by ownership, sales channel, vehicle type, end buyer and region. The report provides a detailed as well as unbiased analysis of the ongoing drivers, opportunities/high growth areas, and trends of the sector which are projected to support the stakeholders to align as well as devise their market strategies as per the latest and future market dynamics.