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Saudi Arab - Car Sales Expect to Recover in Q4 2009
May 14, 2009

Saudi Arabian car market is expected to rebound towards the final quarter of 2009, with sufficient credit availability for the car purchases.

Managing Director of Haji Husein Alireza & Co. Ltd., Ali H. Alireza, has noted that the Saudi Arabian car market has not been much affected by the global economic recession, and will most probably rebound in Q4 2009, with the launch of new 2010 models, as reported by menafn

According to Assistant Deputy Minister for Technical Affairs, Mufareh bin Mohammed Al Zahrani, Saudi automobile market, including commercial automobiles and transport infrastructure, at present worth $9 Billion. Further, Alireza added that in 2008, the country imported 550,000 Units of vehicles, nearly 10% up from 2007, out of which the country re-exported 150,000 Units.

The projections for the rebound are based on the fact that global recession has failed to put any significant impact on the Saudi car sector. Household incomes and facilities are driving car demand in the Kingdom.

However, the prices of automobiles continue to rise primarily due to the costs fixed by the oversea manufacturers and fluctuating currency market. The prices of Japanese automobiles have also surged on account of fluctuating value of Yen as Japan is the main automobile exporter to Saudi Arab.

While the US car market is suffering from credit crisis, there has been no shortage of credit in Saudi Arabia so far and banks are lending credit on car purchases. Moreover, according to the Saudi government, the significance as well as potential of the country’s automotive market could be easily realized from the presence of several automobile companies from countries such as Taiwan, UK, China, Turkey, Germany, Iran, Thailand, and the Arabian countries alongwith the local companies.

According to a Research Analyst at RNCOS, “Several mega-projects are lined up in Saudi Arabia, majority of which are focusing on the sectors in which the country is having a comparative economic advantages. This will, in turn, propel the automobiles demand in the country. In addition to this, Saudi automotive sector looks very promising, with surging demand for imported cars which offer innovative style, design and performance.” 

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