Automobiles, sometimes known as passenger vehicles, are motor vehicles designed primarily to transport people. These vehicles are used for personal and family mobility, as well as commuting to work and recreational activities. These cars are available in a wide range of sizes, designs, and models to meet a variety of needs and preferences, including hatchbacks, SUVs, sedans, and others. Additionally, passenger vehicles are powered by several sorts of engines, including gasoline, diesel, hybrid, and electric.
Saudi Arabia Passenger Car Market Driving Factors and Challenges
Driving Factors: The market has grown significantly in recent years and is expected to continue to expand in the coming years as a result of the tremendous integration of advanced technologies, such as advanced driver assistance systems in passenger cars, an increase in disposable income, rising production of electric passenger cars, and rapid technological advancements in passenger car technology. The Saudi Vision 2030 project has accelerated market expansion through economic development activities, rising disposable incomes, and an increase in the middle-class population. Furthermore, foreign automakers have responded enthusiastically in Saudi Arabia by opening women-only dealerships and releasing models tailored exclusively to female preferences.
Challenges: Price fluctuations in raw materials such as steel, aluminum, and petroleum-based products have a significant impact on passenger car demand. Because these materials are an essential component of vehicle manufacture, price changes can have a considerable impact on overall production costs. With manufacturers primarily reliant on these components for car building, an increase in raw material prices can cause a surge in manufacturing costs, forcing automakers to change their pricing strategy. As a result, fluctuations in raw material prices limit the expansion of the passenger automobile market.
Impact of COVID-19 on Saudi Arabia Passenger Car Market
Saudi Arabia's automobile industry is slowing down as a result of the COVID-19 interruption, which had a catastrophic impact on domestic sales. Due to its heavy reliance on imports, Saudi Arabia's automobile industry is growing more slowly. Despite obstacles, the Saudi automotive industry is already beginning to fully recover and return to its pre-pandemic sales volume levels. Furthermore, the passenger car market has already started to expand in FY2022, thanks to the introduction of electric vehicles, which is anticipated to boost local demand even more.
Saudi Arabia Passenger Car Market Key Players:
Toyota Motor Corporation, Hyundai Motor Company, Nissan Motor Co., Ltd, Kia Corporation, ISUZU MOTORS LIMITED, Changan Automobile Group, Zhejiang Geely Holding Group Co., Ltd, Ford Motor Company, Mazda Motor Corporation, and Suzuki Motor Corporation are just a few of the major market players that are thoroughly examined in this market study along with revenue analysis, market segments, and competitive landscape data.
Saudi Arabia Passenger Car Market Segmentation:
By Vehicle Type: Based on the Vehicle Type, Saudi Arabia Passenger Car Market is segmented as; Pickups, Sedans, SUVs, Vans and Hatchbacks.
By Fuel Type: Based on the Fuel Type, Saudi Arabia Passenger Car Market is segmented as; ICE, Electric.
By Region: This research also includes data for Eastern Region, Western Region, Southern Region, Northern Region.
This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.