Market Forecast By Product Type (Electric, Hybrid Electric, Plug-In Hybrid Electric, Mild Hybrid, Natural Gas, Fuel Cell Electric, Diesel, Petrol) And Competitive Landscape
|Product Code: ETC431795||Publication Date: Nov 2022||Product Type: Market Research Report|
|Publisher: 6Wresearch||No. of Pages: 75||No. of Figures: 35||No. of Tables: 20|
Saudi Arabia Automotive Market is expected to grow during the forecast period. The rising population and increasing spending on transportation are the primary factors driving the growth of the automotive market in Saudi Arabia. The government is taking various measures to promote the automotive industry including offering tax breaks and implementing favourable policies for Saudi Arabia automotive companies. The country has also allocated funds for infrastructure development such as new highway networks and industrial zones that will support the automotive sector.
According to 6Wresearch, the Saudi Arabia Automotive Market size is expected to grow during 2022-2028. The automotive market in Saudi Arabia has a long history. The first car was imported into Saudi Arabia in 1929. At that time, there were only a few hundred cars on the road in Saudi Arabia. The number of cars on the road grew rapidly over the next few years, and by 1935 there were more than 10,000 cars on the road in Saudi Arabia.
The Saudi Arabia automotive industry 2022 has been shrinking for the past few years. This is mainly because of two factors: the high cost of fuel and the high rate of inflation. Inflation has made it difficult for people to save money, and the cost of fuel has made it difficult for people to afford to buy cars. Despite this, the Saudi Arabia Automotive Market revenue is still worth billions of dollars.
Sales of passenger cars and commercial vehicles are dominating the market, but there is a growing demand for trucks and SUVs. The government has been investing in infrastructure development, including new highways and airports, which is helping to increase sales of medium-sized trucks. However, demand for small cars remains weak due to high costs and lack of available financing options.
The Saudi Arabia Automotive Market growth was due to several factors. First, there was a lot of oil wealth available to purchase cars and other forms of transportation. Second, there was a large population that needed access to vehicles so they could get around town quickly. Third, there was a limited number of roads at that time, so owning a car allowed people to travel more easily across the country.
One of the key reasons for the growth in the Saudi Arabia automotive market is increased spending on transportation services, such as car rentals and taxi services. In addition, there is an increasing demand for luxury vehicles due to rising income levels among Saudis. The government has also initiated schemes to boost electric vehicle sales in order to reduce dependence on oil products.
The growth is driven by increasing number of vehicle registrations, which is attributed to rising income levels and population growth, increasing demand for luxury vehicles, as well as rising population and tourism levels. The luxury segment dominates the Saudi Arabia Automotive market, with sales accounting for over two-thirds of all vehicles sold in the country. This is due to high incomes and strong demand from wealthy consumers, as well as government policies that promote luxury car ownership. In addition, the growth of the tourism sector is also contributing to the growth of the Saudi Arabia Automotive market.
Based on Product Type, the Saudi Arabia Automotive Market share is segmented into Electric, Hybrid Electric, Plug-In Hybrid Electric, Mild Hybrid, Natural Gas, Fuel Cell Electric, Diesel, and Petrol.
Diesel and petrol are the two most popular fuels in the Saudi Arabia automotive market size. Diesel fuel accounts for more than three-quarters of the total sales volume and is prevalent due to its lower cost compared to petrol. Petrol remains a key component of the market, especially in the luxury segment, but its share has been declining over time as diesel fuel emerges as a more preferred choice among consumers.
Hybrid vehicles are also expected to account for a major share of the market in Saudi Arabia. The country has been proactive in promoting hybrid vehicles and offers incentives such as tax breaks and free fuel. Ford Motor Company has announced plans to produce hybrid vehicles in the country by 2021. Toyota also plans to produce hybrids in Saudi Arabia starting from 2020.
The market for natural gas cars is expected to grow at a higher rate than that for hybrid cars. This is because natural gas has lower emissions than gasoline and diesel, which makes it a preferable choice for environmental reasons. Honda has already begun production of natural gas cars in Japan, and Hyundai is planning to launch its own line of natural gas cars later this year.
The COVID-19 pandemic has had a significant impact on the Middle East automotive market. Many consumers have chosen to avoid traveling, and this has led to a decrease in demand for cars. Additionally, many companies have suspended production and sales due to the pandemic. The government has also imposed restrictions on the transportation of goods and people, which has further impacted the market.
The rising global demand for electric and autonomous vehicles has led to an increase in investments in this sector, with several companies opting to establish plants in the region. However, the COVID-19 outbreak has had a negative impact on public sentiment towards electric and autonomous vehicles, as well as their manufacturers. This is likely to result in a slowdown or even a reversal of these investments, particularly if there is no quick and effective resolution to the crisis.
One obstacle facing the growth of the Saudi Arabia automotive market is low fuel prices – which make conventional gasoline-powered cars less affordable than electric or hybrid models. This has led to a decline in sales of traditional gasoline-powered cars in Saudi Arabia over the past few years. In addition, stringent environmental regulations have made it difficult for manufacturers to produce large
There are several Regulations and Standards in Saudi vision 2030 automotive which affect the development of automakers in Saudi Arabia. For instance, importation of new or used vehicles must comply with Saudi standards; foreign automakers must have a 25% local ownership stake as mandated by the Ministry of Industry and Mineral Resources; and all new automobile models sold in the kingdom must be equipped with airbags. Additionally, there are environmental regulations that must be followed for any automaker looking to expand into the kingdom, such as limiting vehicle CO2 emissions to 130 grams per kilometre.
The report offers a comprehensive study of the subsequent market segments:
1. Does the report include the impact of COVID-19?
Yes, the report includes the impact of coronavirus.
2. Which factor is driving Saudi Arabia Automotive Market?
The market is driven by factors such as the increasing prevalence of anxiety and insomnia, the growing geriatric population, and the rising number of road accidents.
3. Who are the key customers in Saudi Arabia Automotive Market?
Some of the key customers in the Saudi Arabia Automotive Market include Residential and Commercial sectors.
4. What is the forecast period for the Saudi Arabia Automotive Market report?
The Saudi Arabia Automotive Market report covers 2022-2028 as the forecast years.