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Saudi Arabia is on the threshold of revival of the economy through many planned projects under development which is line with the Kingdom’s Vision 2030. The automotive industry is an important part of this vision.
The Saudi Automotive Market
The Saudi automotive market is one of the only sectors that is sustaining its growth in the Kingdom as it caters to the largest market of the Gulf and Middle East. In addition, Saudi Arabia has put forth an ambitious strategy for industrial diversification and the automotive sector is part of the National Industrial Clusters Development Program.
Saudi Arabia’s automotive sector has a market value of more than SR82.5 billion and has established locally a number of companies for manufacturing equipment and original spare parts.
The automotive market is considered one of the fastest growing markets in Saudi Arabia. Demand varies for different brands in different categories from luxury cars, 4×4 to small and midsized cars. Additionally, the sale of commercial vehicles is expected to rise due to current and potential infrastructure projects.
Currently the sales of new and used cars is between 600,000 to 820,000 vehicles per year and is expected to reach one million during the years 2016 and 2017.
The Middle East has become one of the most lucrative areas for the automotive industry, where the sale of vehicles is getting an annual growth rate of 11%.
Saudi Arabia holds first place in the region for being the largest importer of cars and spare parts, distributing an average of 76,000 cars per year. Car sales continue to rise in Saudi Arabia at a rate of 6.7 yearly and is expected to exceed one million cars by 2020.
The Saudi car market witnesses a growing demand for small economical cars for the working class due to the rise in population, especially with young adults below the age of 30 that make up 60% of the total population in the Kingdom.
The commercial vehicle market in the Kingdom of Saudi Arabia is very active due to the continued high demand of the large growth in the projects as well as increased demands for buses to meet the growing needs of transport services for Haj and Umrah pilgrims, as well as the movement of laborers for various industrial and development projects and the requirements of the transportation authority such as SAPTCO, to accommodate the huge number of passengers.
The Saudi government aims to meet this demand not only through imports but also by attracting original equipment manufacturers (OEMs) to open facilities in the country and simultaneously developing a domestic automotive design and manufacturing capacity.
The show will have on display a range of car brands from US, Korea, Japan and China. The outdoor area of the exhibition center is dedicated to commercial vehicles and many entertaining activities for the youth like modified cars and the participation of different car clubs . The north parking area of the exhibition will have drifting organized by Nissan and off road activity by Kia.
Oil segment is an equally important part of the show with eni lubricants as the diamond sponsor and participation of other brands like Total and Shell.
Financial services to potential buyers are provided by the shows Main sponsor Riyahd Bank and other financial and insurance institutions and companies.
“Saudi International Motor Show is the flagship of ACE and has served the automotive industry and the end users for over three decades providing what is best in the market” Commented Zahoor Siddique, Vice President- Ace Exhibitions.
The show timings are daily 4-10 p.m. December 11-15, 2016.
© The Saudi Gazette 2016
