Saudi Arabia’s automotive ecosystem is set for a rapid transformation with 20 percent of the female population, or three million drivers, expected to be added to the Kingdom’s roads by 2020, a recent Aranca whitepaper stated.
The whitepaper added that in addition to new car sales, the positive impact of a new customer segment over the next one to three years will be felt in the kingdom’s automotive aftermarket, which was valued at USD 7.4 billion in 2017.
An October 2018 report said the lifting of the ban on women driving in Saudi as of June 2018, along with recovering oil prices and economic policies aimed at boosting consumer spending, will result in an eight percent per year increase of passenger vehicles sales until 2022.
According to Aranca, car parc (vehicles in operation) in Saudi Arabia stood at 7.3 million in 2017, with 438,000 new passenger cars and 110,000 new commercial vehicles sold for the year. Tires accounted for the greatest slice of revenue in the Saudi’s spare parts market, with a 30 percent share in 2017 (USD 2.2 billion), followed by lubricants (USD 1.4 billion), batteries (USD 400 million), and other components (USD 3.4 billion).
The figures are worth considering especially as the market gears up for Automechanika Jeddah 2019.
The third edition of the three-day event will take place from February 26-28, 2018 at the Jeddah Center for Forums and Events, featuring more than 150 exhibitors from 20 countries. Many of these will arise in Saudi’s western regions of Madinah and Makkah, where more than one million women are expected to get behind the wheel by 2020.
The whitepaper further stated that key industry players are already taking initiatives to capitalize on opportunities created by women being allowed to drive, including the creation of women-only car showrooms, auto-insurance claim centers and driving schools dedicated to women.
Meanwhile, rising vehicle parc is setting the stage for growth. Aranca said 10 million vehicles will ply Saudi roads by 2022, including 6.5 million passenger vehicles and 3.5 million commercial vehicles. As a result, demand for spare parts and related auto services will grow six percent annually, reaching a value of USD 9.8 billion in 2022.
“Consumption of auto spare parts and services in Saudi Arabia will grow at a healthy rate in the coming years, aided by the addition of a whole new segment of the population that is now allowed to drive. Longer warranty periods, growing vehicle parc, and environmental factors that lead to high wear and tear on car parts also provide added impetus in the auto aftermarket, with Automechanika Jeddah 2019 presenting an unrivaled platform for global suppliers to tap into emerging opportunities,” said Mahmut Gazi Bilikozen, Automechanika Jeddah’s Show Director.
The international presence at Automechanika Jeddah 2019 will be underlined by five country pavilions from Germany, the USA, Turkey, Korea and China.