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Saudi Arabia Used Car Market Outlook to 2026F

Driven by Boom in Online Platforms and increase in internet and smartphone penetration

Region:Middle East

Author(s):Aishwarya Kochhar, Pallavi Gupta

Product Code:KR1190

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Published on

August 2022

Total pages

115

Table of Content

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About the Report

About the Report

The report titled “Saudi Arabia Used Car Market Outlook to 2026F- Driven by Boom in Online Platforms and Increase in internet and smartphone penetration” provides a comprehensive analysis of the status of the used car industry in Saudi Arabia. The report covers various aspects of the industry, revenue generated by the KSA Used Car Market, its segmentation viz, By Market Structure (Organized & Unorganized), By Type of Car (Sedans & Hatchbacks, SUVs & Crossovers, Pick-ups and Luxury), By Brand (Toyota, Hyundai, GMC & Chevrolet, Ford, and Others), By Age of Vehicle (Less than 1 year, 1-3 years, 3-5 years & More than 5 years), By Kilometers Driven (Less than 50,000 Km, 50,000-80,000 Km, 80,000-150,000 Km & More than 150,000 Km) and By Region (Northern, Southern, Central, Eastern and Western), business models, major trends and development, issues and challenges, technological advancements and competition analysis. Saudi Arabia Used Car Market report concludes with projections for the future of the industry including forecasted sales volume & gross transaction value by 2026, future market segmentation, Covid-19 impact, emerging online used car models, international case studies, and analysts’ take on the future.

KSA Used Car Market Overview and Size
The used car industry in Saudi Arabia has grown at a notable CAGR on the basis of gross transaction value and sales volume over the period 2017-2021. The availability of multiple financing options, booming growth of the online classified and auction market and increasing smartphone and internet penetration led to an increase in sales from 2017-2021. The addition of women drivers and the high levels of disposable income in the country are some of the major growth drivers of the industry.

KSA Used Car Market Segmentations

By Market Structure: The industry in Saudi Arabia is largely unorganized due to the preference of consumers towards peer-to-peer sales, largely facilitated by online auto-classified platforms. The organized market comprises large authorized brand dealerships as well as multi-brand outlets and exhibitions.

By Sales Channel: The unorganized sector contributed to the majority of the sales of used cars in the country. This higher preference for the Unorganized sector was because used cars are cheaper on this platform and customers save 15% VAT charged by Organized players. Over time preference towards organised is increasing due to more convenient buying experience and value-added services (warranty, certification).

By Type of Cars: Sedans and hatchbacks were observed to dominate the used car market on the basis of sales volume as they are economical and suitable for almost all kinds of buyers. SUVs & crossovers were found to be the second most preferred types of cars in the country and pick-ups & luxury cars contributed to the remaining sales.

By Car Brands: Toyota continues to dominate the used car market in Saudi Arabia due to the higher preference of the consumers towards the brand for its reliability and low maintenance. Also, the easy availability of spare parts and the higher residual value of Toyota cars contribute to higher sales. Hyundai contributed to the second-highest sales volume in 2021

By Age of Vehicle: Three to five-year-old used cars were observed to dominate the used car sales in the country in 2021. As the instalment period for cars purchased on finance is around 3-5 years after which people usually prefer to sell off their cars. 1-3-year-old vehicles contributed to the second-highest sales volume as a large number of these cars found their way to the used car market when car rental companies de-fleet their existing fleet.

By Kilometers Driven: A large proportion of the used cars sold in 2021 belonged to the category of 80,000-150,000 kilometres. Cars with a mileage of 50,000-80,000 kilometres were also largely preferred by the consumers due to their nearly new look and feel and are also economical.

By Regions: The central region including the capital of Riyadh accounted for the highest number of used car sales in the country in 2021 due to the concentration of the young working population in the region. The western region contributed the second-highest used car sales. Most of the major authorized dealers have multiple showrooms in these regions.

By Age Group of Buyers: The majority of the buyers in the used car market were observed to be in the age group 30-60 years. Many young working professionals, expatriates, and families owning multiple cars belong to this age group. The demand for used cars among the age group of 18-30 years is also increasing with increasing disposable income and job opportunities.

Saudi Arabia Organized Market Segmentation

By Sales Channel: The unorganized sector contributed to the majority of the sales of used cars in the country. This higher preference for the Unorganized sector was because used cars are cheaper on this platform and customers save 15% VAT charged by Organized players. Over time preference towards organisation is increasing due to more convenient buying experience and value-added services (warranty, certification).

Competitive Landscape of the KSA Used Car Market:
The industry is highly fragmented and competitive with 2,200+ dealerships operating in the market. Many brands have a certified pre-owned car program in place in the country. Amongst the brand authorized dealerships, the top 6 players including Abdul Latif Jameel Motors, Aljomaih Automotive Company, Al Jazirah Vehicles, Universal Motors & Gulf Advantage are analyzed to account for almost half of the used car sales through the authorized dealerships.  These players compete on the basis of parameters such as geographical presence, value-added services offered, financing options, after-sales services offered, dealership network, and more.

KSA E-Commerce Logistics Market Future Outlook and Projections
The used car industry is expected to recover from the Covid-19 pandemic and witness growth by 2026. The increasing demand from smaller cities such as Jazan, and Arar among others is expected to drive the growth of the industry. The growing traction towards online platforms is expected to compel dealerships to expand their presence online. Online platforms are expected to leverage the latest technologies such as artificial intelligence & virtual reality to enhance the user browsing experience. The overall used-to-new car sales ratio in the country is also expected to improve in the future.

KSA Used Car Market

By Market Structure
  • Organized Sector
  • OEM Certified Dealers
  • Multi-Brand Non-Franchise Dealerships
  • Auction Companies
  • Unorganized Sector
  • C2C
  • Local Dealers
  • By Type of Car
  • Sedan and Hatchback
  • Suv
  • Pickup trucks
  • Luxury
  • By Manufacturer
  • Toyota
  • Hyundai
  • Ford
  • Chevrolet
  • GMC
  • Nissan
  • Kia
  • By Kms Driven
  • <50,000
  • 50,000-80,000
  • 80,000-150,000
  • >150,000
  • By Age of Vehicle
  • 1-2 years
  • 3-5 years
  • >5 years
  • By City
  • Northern
  • Southern
  • Central
  • Western
  • Eastern
  • By Age of the Consumer:
  • 18-34
  • 35-54
  • 55+
  • By Age of the Consumer:
  • Female
  • Male
Key Target Audience
  • Used Car Companies
  • OEMs
  • Multi-Brands
  • Online Used Car Portals
  • Used Car Financing Companies
  • Government Bodies
  • Investors & Venture Capital Firms
  • Used Car Dealerships
  • Used Car Industry
  • Used Car Manufacturing Companies
  • Used Car Distributors
  • Used Car Auction Houses
  • Used Car Associations
Time Period Captured in the Report:
  • Historical Year: 2017–2021
  • Base Year: 2021
  • Forecast Period: 2021–2026F
Companies Covered:

Online Auto-Classified
  • Expatriates
  • Expat
  • Haraj
  • Opensooq
  • Mourjan
  • YallaMotors
  • Motory
  • SellAnyCar
  • Syarah
  • CarsSwitch
  • Carnab
  • OLX
  • Saudisale
  • Halta2ee
Major Auction Companies
  • Abdulla Fouad Company of Public Auctions Car Sales
  • Sultan Nasser Auctioneers Est
  • AutoWorld (AKA Al Jazira Equipment Co.Ltd)
  • Saud Qahtani Auction Company
  • Motory
  • Syarah
  • Mozayada
  • budgetsaudi
  • Mazadhala
Major Finance Institution
  • Alinma Bank
  • Riyad Bank
  • ANB Leasing Bank
  • Emirates NBD Auto Lease Bank
  • Al Rajhi Bank
  • National Commercial Bank
  • Saudi Investment Bank
  • Bank Albilad
  • Al Yusr
  • Taajeer Finance Company
  • Abdul Latif Jameel
  • Al-Tayseer Car Finance
Major Finance Institution
  • Abdul Latif Jameel
  • Aljomaih Automotive Company
  • Al Jazirah Vehicle
  • Mohamed Yousuf Naghi
  • United Motors Company
  • Universal Motors Agencies
  • SAMACO Automotive
  • Petromin Stellantis
Key Topics Covered in the Report
  • KSA Automotive Market Overview
  • KSA Used Car Market Overview
  • KSA Online E-commerce Used Car Market
  • Market Ecosystem
  • Value chain Analysis
  • Customer Buying Journey in KSA
  • Decision-Making Parameters for Customers
  • Offline and Online Business Models
  • Detailed Analysis of KSA Used Car Market (Market Size, 2021; Market Structure; Market Segmentations; Competition; Future Market Size, 2026; Future Trends and the Way Forward
  • Snapshot on Online Used Car Platforms in KSA
  • Snapshot of Used Car Auction House in KSA
  • Snapshot of the Used Car Finance Market in KSA
  • Business Opportunity (Customer Profile Analysis)
  • Recommendations (Sales and Marketing Strategies, Positioning Strategies, Business Framework)

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Products

Products

KSA Used Car Market

By Market Structure

  • Organized Sector
  • OEM Certified Dealers
  • Multi-Brand Non-Franchise Dealerships
  • Auction Companies
  • Unorganized Sector
  • C2C
  • Local Dealers
  • By Type of Car
  • Sedan and Hatchback
  • Suv
  • Pickup trucks
  • Luxury
  • By Manufacturer
  • Toyota
  • Hyundai
  • Ford
  • Chevrolet
  • GMC
  • Nissan
  • Kia
  • By Kms Driven
  • <50,000
  • 50,000-80,000
  • 80,000-150,000
  • >150,000
  • By Age of Vehicle
  • 1-2 years
  • 3-5 years
  • >5 years
  • By City
  • Northern
  • Southern
  • Central
  • Western
  • Eastern
  • By Age of the Consumer:
  • 18-34
  • 35-54
  • 55+
  • By Age of the Consumer:
  • Female
  • Male

Key Target Audience

  • Used Car Companies
  • OEMs
  • Multi-Brands
  • Online Used Car Portals
  • Used Car Financing Companies
  • Government Bodies
  • Investors & Venture Capital Firms
  • Used Car Dealerships
  • Used Car Industry
  • Used Car Manufacturing Companies
  • Used Car Distributors
  • Used Car Auction Houses
  • Used Car Associations

Time Period Captured in the Report:

  • Historical Year: 2017–2021
  • Base Year: 2021
  • Forecast Period: 2021–2026F


Companies

Companies Covered:

Online Auto-Classified

  • Expatriates
  • Expat
  • Haraj
  • Opensooq
  • Mourjan
  • YallaMotors
  • Motory
  • SellAnyCar
  • Syarah
  • CarsSwitch
  • Carnab
  • OLX
  • Saudisale
  • Halta2ee

Major Auction Companies

  • Abdulla Fouad Company of Public Auctions Car Sales
  • Sultan Nasser Auctioneers Est
  • AutoWorld (AKA Al Jazira Equipment Co.Ltd)
  • Saud Qahtani Auction Company
  • Motory
  • Syarah
  • Mozayada
  • budgetsaudi
  • Mazadhala

Major Finance Institution

  • Alinma Bank
  • Riyad Bank
  • ANB Leasing Bank
  • Emirates NBD Auto Lease Bank
  • Al Rajhi Bank
  • National Commercial Bank
  • Saudi Investment Bank
  • Bank Albilad
  • Al Yusr
  • Taajeer Finance Company
  • Abdul Latif Jameel
  • Al-Tayseer Car Finance

Major Finance Institution

  • Abdul Latif Jameel
  • Aljomaih Automotive Company
  • Al Jazirah Vehicle
  • Mohamed Yousuf Naghi
  • United Motors Company
  • Universal Motors Agencies
  • SAMACO Automotive
  • Petromin Stellantis

Table of Contents

Table of Contents

1. Executive Summary

2. Country Overview

2.1 KSA Country Overview

2.2 KSA Key Demographics Indicators

3. Market Analysis

3.1 KSA Automotive Market Overview

3.2 Revenue Share of Major Car Brands in KSA

3.3 Passenger Car Landscape in KSA

3.4 Import and Export of Passenger Cars in KSA

3.5 Passenger Car Landscape

4. KSA Used Car Market Overview

4.1 Ecosystem of Major Entities in KSA Used Car Market

4.2 Overview and Genesis of KSA Used Car Market

4.3 Step-by-step sales process of Used Cars in KSA

4.4 Value Chain Analysis of KSA Used Car Industry

4.5 Role of Entities in Value Chain Analysis in KSA Used Car

4.6 Lead generation for used cars in KSA

4.7 Sourcing of used cars for dealers in KSA

4.8 KSA Used Car Market sizing analysis, 2017-2021P

5. KSA Automotive Market Segmentation

5.1 By Type of Market Structure, 2021 (Organized and Unorganized Sector)

5.2 By Type of Organised and Unorganised, 2021

5.3 By Type of Car, 2021 (Sedan, SUV and Hatchback)

5.4 By Brand, 2021 (Toyota, Hyundai, Ford etc.)

5.5 By Manufacturer, 2021

5.6 By Age of Vehicle, 2021 (5 years)

5.7 By Kilometres Driven, 2021 (<50,000Kms, 50,000-80,000KMS, 80,000-150,000Kms, >150,000Kms)

5.8 By Region, 2021 (Central, Western, Eastern, Southern and Northern)

6. Customer Profile of Used Car Market in KSA

6.1 Customer Analysis By Customer Age and By Gender, 2021

6.2 Customer Pain points in Used car industry

6.3 Decision Making Parameters for Customers

6.4 Key Factors and Price Determinants Influencing Used Car Purchasing Decisions

6.5 Findings on Consumer Analysis

7. Snapshot on Online Classified Used Car Platforms in KSA

7.1 Purchase Evolution of Used Car Platforms

7.2 Transactional platforms in Used Car industry

7.3 Used car journey on Online platforms in KSA

7.4 Existing Business Frameworks

7.5 Competition Scenario: Positioning of Auto Classifieds in KSA

7.6 Existing and Emerging Online Retails Models in KSA Used Car Market

7.7Cross Comparison of Major Online Auto-Classifieds

8. Snapshot on Used Car Auction Market in KSA

8.1 Ecosystem and Overview of KSA Used Car Auction Market

8.2 Comparison of Major Auction Market Players

9. Snapshot on Used Car Finance Market in KSA

9.1 Ecosystem and Overview of KSA Used Car Finance Market

9.2 Cross Comparison of Major Financial institutes

10. KSA Used Car Market Industry Analysis

10.1 SWOT Analysis of KSA Used Car Market

10.2 Trends and Recent Development's in the KSA Used Car Market

10.3 Issues and Challenges in the KSA Used Car Market

10.4 Buying Criteria of the customers in KSA Used Car Market

10.5 Selling Criteria Used by the Players in KSA Used Car Market

11. Competition Framework for KSA Used Car Market

11.1 Brand Perception Mapping of Major Players in KSA Used Car Market

11.2 Cross Comparison of Major OEMs (Inception Year, No. of Branches/Showrooms, Used Car Sales, Best Selling Model, Inventory, Warranty, Value added Services, Sourcing, Inspection Check, Online Presence Funding)

12. Covid-19 Impact on KSA Used Car Market

12.1 Covid-19 Impact on KSA Automotive Market

12.2 Covid-19 Impact on KSA Used Car Market

13. Outlook and Future Projections for KSA Used Car Market

13.1 Future Projections for KSA Used Car Market Size, 2021-2026F

13.2 Future Segmentation By Type of Market Structure, 2026F

13.3 Future Segmentation By Type of Car and Manufacturer, 2026F

13.4 Future Segmentation By Kilometres Driven and Age of Vehicle, 2026F

13.5 Future Segmentation By Region, 2026F

13.6 Future Trends and Way Forward

14. Analyst Recommendations

14.1 Take on Future Market Positioning

15. Case Study Analysis

15.1 International Case Study – CarSwitch

15.2 Operating model – CarSwitch (UAE)

15.3 International Case Study – CarsTrade (India)

15.4 Operating model – CarsTrade (India) International

15.5 Case Study – Cars24 (India)

15.6 Operating model – Cars24 (India)

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