Report Overview

Report Overview

Saudi Arabia Used Cars Market is flourishing owing to the increasing preference of consumers for vehicle ownership, rising disposable income, and the wide availability of quality as well as affordable used cars in the market.

Saudi Arabia Used Cars Market - Industry Trends & Forecast Report 2028

Saudi Arabia Used Cars Market is anticipated to grow at a CAGR of 5.2% during the forecast period (2022-2028). The market is growing steadily at a high rate owing to the weaker economic sentiment and financial constraints due to the COVID-19 pandemic. This shifted consumers' preference toward used cars. Thus, consumers are preferring affordable pre-owned vehicles rather than spending hefty sums on purchasing new cars. Also, Saudi Arabian residents prefer to travel in their own cars for performing daily activities and traveling long distances for relaxation purposes.

Saudi Arabia Used Cars - Overview

Saudi Arabia used cars provide a variety of used cars. Used cars are a second-hand vehicle that has been previously owned and is now for sale. Buying used cars leads to easy access to financing options, annual maintenance contracts, and lower entry prices. The used cars market is also a convenient way for first-time drivers and those looking for a good car in an affordable price range. Many E-commerce platforms in Saudi Arabia have a huge availability of various used cars for selling.

Saudi Arabia Used Cars Market Forecast and Trends

Growth Drivers

Shifting Preference toward Online Platforms

Many E-Commerce platforms like Haraj, Motory, Syarah, SaudiSale, and Abi Sayara have introduced the facility for selling a variety of small, mid-size, and luxury used cars. This move is expected to facilitate used car sales in the future due to increased ease for buyers and sellers. Moreover, many Saudi dealerships are developing online platforms to sell used cars and to enable 100% online end-to-end transactions without visiting the showrooms. This aids to fuel the growth of Saudi Arabia Used Cars Market during the forecast period (2022-2028).

Expanding Integration of Advanced Technologies

The online platforms and dealerships are expanding their business. They are implementing the latest technologies such as 360 degrees 3D view of the interiors and exteriors to enhance the consumer experience. Also, to provide more insightful data to make smart decisions before buying used cars. Moreover, the integration of advanced technologies like the Internet of Things (IoT) and artificial intelligence (AI) gathers customer data and aims to allow market players in making appropriate marketing decisions to increase the sale of used cars.

Restraints

Increasing Fuel Prices and Tripling of VAT Rates

The continuously increasing fuel prices raise concerns among consumers about buying cars and declining demand for the used cars market. Also, the high vehicle insurance rate negatively impacted the used car sales over the review period. Moreover, effective July 1, 2020, Saudi Arabia hiked its value-added tax (VAT) rates from 5% to 15%, as a part of measures to address the fiscal imbalance between public revenues and expenditures. This tripling of VAT rates in Saudi Arabia hampers the demand for a used cars. 

Impact of COVID-19 on Saudi Arabia Used Cars Market

The sudden outbreak of COVID-19 minimally impacted the growth of Saudi Arabia Used Cars Market. This is because the sales and production of new vehicles were hindered due to the pandemic, and consumers started adopting used cars. Due to the lack of new cars from auto plants, the used car sales boomed in the market.  Also, the economic crisis offers a lucrative growth opportunity in the used car market. As several people were looking for vehicles at affordable prices, which results in surging the demand for used cars in the country, propelling the overall market growth.

Saudi Arabia Used Cars Market - By Structure

Based on structure, Saudi Arabia Used Cars Market is segmented into Organized and Unorganized. The organized segment accounts for the largest market share owing to the rising implementation of new technologies such as blockchain to store and maintain. Also, the organized players can provide various services by offering used cars, such as towing services at the dealership.

Saudi Arabia Used Cars Market - By Car Type

Based on car type, Saudi Arabia Used Cars Market is segmented into Hatchback, Sedan, SUVs, Pick-ups and Luxury, and Others. The luxury segment dominates the market. Since it is not easy to buy a new luxury car due to its high cost. So, consumers prefer to buy used luxury cars for their comfort. This drives the growth of Saudi Arabia Used Cars Market during the forecast period (2022-2028).

Saudi Arabia Used Cars Market - By Age of Vehicle

Based on the age of the vehicle, Saudi Arabia Used Cars Market is segmented into Less than 1 year, 1-3 years, 3-5 years, and more than 5 years. The segment of less than 1 year dominates the market. The average age of luxury used vehicles coming into the market is between 1-2 years, compared to 3-5 years for mid-size, and more than 5 years for small vehicles. This makes a better option for adopting luxury used cars and reinforces the market growth.

Saudi Arabia Used Cars Market - Regional Insights

Geographically, Saudi Arabia Used Cars Market is segmented into Northern and Central, Southern, Eastern, and Western. The Central region segment is anticipated to dominate the market owing to the large proportion of the working population in the region. Also, the expanded business hub, urbanization, and most large brand-authorized dealers have multiple showrooms in this region. That plays a crucial role in fueling the demand for Saudi Arabia Used Cars Market during the forecast period (2022-2028).

Competitive Landscape

The leading market players in Saudi Arabia Used Cars Market are Abdul Latif Jameel Motors, Aljomaih Automotive Company Ltd., Al Jazirah Vehicles Agencies Co., Universal Motors Agencies Ltd., Mohamed Yousuf Naghi Motors Co., United Motors Company, Gulf Advantage Automobiles LLC, Haraj, Motory, Syarah, SaudiSale, and other prominent players.

The market is highly competitive and fragmented with the presence of various global as well as regional industry participants. The companies constantly launch new products with advanced features to gain a competitive edge over the market. Multinational corporations also invest in expanding their production capacities to meet the growing demand and boost their market penetration. Furthermore, the adoption of competitive strategies such as partnerships, mergers, acquisitions, joint ventures, etc., is also prominent in this market.

Recent Development

• The Saudi Traffic Department introduced the facility for online transfer of ownership for the sale of vehicles amidst the Covid-19 lockdown to enable transfer without requiring a periodic technical inspection.

Scope of the Report

By Market Structure

• Organized
• Unorganized

By Car Type

• Hatchback
• Sedan
• SUVs
• Pick-ups and Luxury
• Others

By Brand

• Toyota
• Hyundai
• GMC & Chevrolet
• Ford
• Others

By Type of Sourcing

• • Car-Rental/Leasing Companies (including Auctions)
  • Buy-Sell/Park-Sell
  • Imports
  • Trade-Ins

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
• 80,000-120,000 Km
• More than 120,000 Km

By Region

• Northern and Central
• Southern
• Eastern
• Western

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3. Market Breakdown & Data Triangulation
      1. Secondary Research
      2. Primary Research
   4. Breakdown of Primary Research Respondents, By Region
   5. Assumption & Limitation
3. Executive Summary
4. Saudi Arabia Used Car Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
   3. Technological Landscape/Recent Development
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
5. Saudi Arabia Used Car Market Overview
   1. Market Size & Forecast by Value, 2018-2028
      1. By Value (USD Million)
      2. By Volume (Thousand Units)
   2. Market Share & Forecast
      1. By Market Structure
         1. Organized
         2. Unorganized
      2. By Car Type
         1. Hatchback
         2. Sedan
         3. SUVs
         4. Pick-ups and Luxury
         5. Others
      3. By Brand
         1. Toyota
         2. Hyundai
         3. GMC & Chevrolet
         4. Ford
         5. Others
      4. By Type of Sourcing
         1. Car-Rental/Leasing Companies (including Auctions)
         2. Buy-Sell/Park-Sell
         3. Imports
         4. Trade-Ins
      5. By Age of Vehicle
         1. Less than 1 year
         2. 1-3 years
         3. 3-5 years
         4. More than 5 years
      6. By Kilometers Driven
         1. Less than 50,000 Km
         2. 50,000-80,000 Km
         3. 80,000-120,000 Km
         4. More than 120,000 Km
      7. By Region
         1. Northern and Central
         2. Southern
         3. Eastern
         4. Western
6. Competitive Landscape
   1. List of Key Players and their Offerings
   2. Market Share Analysis, 2021
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Development (Merger, Acquisition, Partnership.)
7. Impact of COVID-19 on Saudi Arabia Used Car Industry
8. Company Profile (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook)
   1. Abdul Latif Jameel Motors
   2. Aljomaih Automotive Company Ltd.
   3. Al Jazirah Vehicles Agencies Co.
   4. Universal Motors Agencies Ltd.
   5. Mohamed Yousuf Naghi Motors Co.
   6. United Motors Company
   7. Gulf Advantage Automobiles LLC
   8. Haraj
   9. Motory
   10. Syarah
   11. SaudiSale
   12. Other prominent players.
9. Key Strategic Recommendations

List of Figures

Figure 1: Saudi Arabia Used Cars Market Segmentation

Figure 2: Saudi Arabia Used Cars Industry Value Chain Analysis

Figure 3: Saudi Arabia Used Cars Market Size, By Value (USD Million), 2018-2028

Figure 4: Saudi Arabia Used Cars Market Size, By Volume (Thousand Units), 2018-2028

Figure 5: Saudi Arabia Used Cars Market Share (%), By Market Structure, By Value, 2018-2028

Figure 6: Saudi Arabia Used Cars Market Share (%), By Market Structure, By Volume, 2018-2028

Figure 7: Saudi Arabia Used Cars Market Share (%), By Car Type, By Value, 2018-2028

Figure 8: Saudi Arabia Used Cars Market Share (%), By Car Type, By Volume, 2018-2028

Figure 9: Saudi Arabia Used Cars Market Share (%), By Brand, By Value, 2018-2028

Figure 10: Saudi Arabia Used Cars Market Share (%), By Brand, By Volume, 2018-2028

Figure 11: Saudi Arabia Used Cars Market Share (%), By Type of Sourcing, By Value, 2018-2028

Figure 12: Saudi Arabia Used Cars Market Share (%), By Type of Sourcing, By Volume, 2018-2028

Figure 13: Saudi Arabia Used Cars Market Share (%), By Age of Vehicle, By Value, 2018-2028

Figure 14: Saudi Arabia Used Cars Market Share (%), By Age of Vehicle, By Volume, 2018-2028

Figure 15: Saudi Arabia Used Cars Market Share (%), By Kilometers Driven, By Value, 2018-2028

Figure 16: Saudi Arabia Used Cars Market Share (%), By Kilometers Driven, By Volume, 2018-2028

Figure 17: Saudi Arabia Used Cars Market Share (%), By Region, By Value, 2018-2028

Figure 18: Saudi Arabia Used Cars Market Share (%), By Region, By Volume, 2018-2028

List of Tables

Table 1: Saudi Arabia Used Cars Market Size, By Market Structure, By Value (USD Million), 2018-2028

Table 2: Saudi Arabia Used Cars Market Size, By Market Structure, By Volume (Thousand Units), 2018-2028

Table 3: Saudi Arabia Used Cars Market Size, By Car Type, By Value (USD Million), 2018-2028

Table 4: Saudi Arabia Used Cars Market Size, By Car Type, By Volume (Thousand Units), 2018-2028

Table 5: Saudi Arabia Used Cars Market Size, By Brand, By Value (USD Million), 2018-2028

Table 6: Saudi Arabia Used Cars Market Size, By Type of Sourcing, By Value (USD Million), 2018-2028

Table 7: Saudi Arabia Used Cars Market Size, By Type of Sourcing, By Volume (Thousand Units), 2018-2028

Table 8: Saudi Arabia Used Cars Market Size, By Age of Vehicle, By Value (USD Million), 2018-2028

Table 9: Saudi Arabia Used Cars Market Size, By Age of Vehicle, By Volume (Thousand Units), 2018-2028

Table 10: Saudi Arabia Used Cars Market Size, By Kilometers Driven, By Value (USD Million), 2018-2028

Table 11: Saudi Arabia Used Cars Market Size, By Kilometers Driven, By Volume (Thousand Units), 2018-2028

Table 12: Saudi Arabia Used Cars Market Size. By Region, By Value (USD Million), 2018-2028

Table 13: Saudi Arabia Used Cars Market Size. By Region, By Volume (Thousand Units), 2018-2028

Table 14        Abdul Latif Jameel Motors Company Overview                                  

Table 15        Abdul Latif Jameel Motors Financial Overview                                  

Table 16        Aljomaih Automotive Company Ltd. Company Overview                              

Table 17        Aljomaih Automotive Company Ltd. Financial Overview                               

Table 18        Universal Motors Agencies Ltd. Company Overview                                    

Table 19        Universal Motors Agencies Ltd. Financial Overview                                     

Table 20        Mohamed Yousuf Naghi Motors Co. Company Overview                               

Table 21        Mohamed Yousuf Naghi Motors Co. Financial Overview                                

Table 22        Gulf Advantage Automobiles LLC Company Overview                                  

Table 23        Gulf Advantage Automobiles LLC Financial Overview                                   

Table 24        Motory Company Overview                              

Table 25        Motory Financial Overview                               

Table 26        Syarah Company Overview                              

Table 27        Syarah Financial Overview                               

Table 28        SaudiSale Company Overview                                    

Table 29        SaudiSale Financial Overview