SAUDI ARABIA USED CAR MARKET

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MARKET INTELLIGENCE . CONSULTING www.techsciresearch.com

SAUDI ARABIA USED CAR MARKET 2016 – 2026

FORECAST & OPPORTUNITIES

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Scope of Report

Product of Interest (POI): Used Car

Review Period 2016 – 2019

Base Year 2020 Estimated Year

2021 Forecast Period

2022 – 2026 Year Range

USED CAR MARKET

VEHICLE TYPE

• Small Cars

• Mid-Size Cars

• Luxury Cars

REGION

• Northern & Central

• Southern

• Eastern

• Western

A used car, a pre-owned vehicle, or a second-hand car, is a vehicle that has previously had one or more retail owners. Used cars are sold through a variety of outlets, including franchise and independent car dealers, rental car companies, buy here pay here dealerships, leasing offices, auctions, and private party sales. Some car retailers offer "no-haggle prices," "certified" used cars, and extended service plans or warranties.

Market Segmentation

• Petrol/Gasoline

• Diesel

• Others

FUEL TYPE END USE

• Institutional

• Individual

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T a b l e o f C o n t e n t s

S. No. Contents Page No.

1. Product Overview (A brief description of the category and product inclusions considered under the scope of the study to give clear picture to the client about the product of interest.) 2. Research Methodology (A detailed methodology on how we have derived the market related

information and what are the measures that has been taken to validate the data.) 3. Executive Summary

4. Voice of Customer

5.

Saudi Arabia Used Car Market Outlook, 2016-2026F (This chapter includes a brief overview of the product of interest market such as total market’s growth rate, expected growth rate, key growth levers, leading region, top grossing product types, etc. It includes more of a qualitative information about the market.)

5.1.

Market Size & Forecast (This chapter would include the market size i.e., the revenue generated from the United States used car market in one year. In this case, the market size will be provided in value terms for historic period (2016-2019); current/base year (2020); estimated year (2021E); and forecast (2022-2026))

5.1.1. By Value & Volume 5.2. Market Share & Forecast

5.2.1. By Vehicle Type (Small Cars, Mid-Size Cars & Luxury Cars) 5.2.2 By End Use(Institutional, Individual)

5.2.3. By Fuel Type (Petrol/Gasoline, Diesel, others) 5.2.4. By Company (2020)

5.2.5. By Region

5.3. Market Map (By Vehicle Type and By Region)

T a b l e o f C o n t e n t s

6. Saudi Arabia Small Used Car Market Outlook

6.1. Market Size & Forecast 6.1.1. By Value & Volume 6.2. Market Share & Forecast

6.2.1. By End Use 6.2.2. By Fuel Type 6.2.3. By Region

6.3. Market Map (By Vehicle Type and By Region) 7. Saudi Arabia Mid-Size Used Car Market Outlook

7.1. Market Size & Forecast 7.1.1. By Value & Volume 7.2. Market Share & Forecast

7.2.1. By End Use 7.2.2. By Fuel Type 7.2.3. By Region

T a b l e o f C o n t e n t s

8. Saudi Arabia Luxury Car Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value & Volume

8.2. Market Share & Forecast

8.2.1. By End Use

8.2.2. By Fuel Type

8.2.3. By Region

9. Market Trends & Developments

10. Pricing Analysis & Product Benchmarking 11. Saudi Arabia Economic Profile

12. Impact of COVID-19 on Saudi Arabia Used Car Market 13. Competitive Landscape

13.1. Competition Outlook

13.2. Company Profiles (Leading Companies)

T a b l e o f C o n t e n t s

13.2.1. Company Details 13.2.2. Products & Services 13.2.3. Financials (As Reported)

13.2.4. Key Market Focus & Geographical Presence 13.2.5. Recent Developments

13.2.6. Key Management Personnel 14. Strategic Recommendations

15. About Us & Disclaimer

RESEARCH

METHODOLOGY

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Research Methodology

✓ Identifying Key Opinion Leaders

✓ Questionnaire Design

✓ In-depth Interviews Data Collection Developing List

of Respondents Formulating

Questionnaire Market

Profiling Data

Validation

Data Analysis

In-depth secondary research was conducted to

determine top players in the Saudi Arabia used car market, overall market size and segmental market size.

In order to conduct industry experts’

interviews, TechSci formulated a detailed

discussion guide.

List of industry players and industry

specialists was developed.

TechSci conducted interviews with industry experts and

industry players for data collection and

verification.

Data obtained as a result of primary

and secondary research was validated through

rigorous triangulation.

The data was scrutinized using MS-Excel, statistical

tools and internal proprietary database to

obtain qualitative and quantitative insights about

the Saudi Arabia used car market.

Data Collection

Data Filter

& Analysis Research &

Intelligence

Actionable

Insights Business Solution

Primary Research Desk Research Company Analysis

✓ Recent Developments

✓ Market Changing Aspects/Dynamics

✓ Government Policies

✓ Conclusion

✓ Market Participants

✓ Key Strengths

✓ LinkedIn

✓ TechSci Internal Database

✓ Factiva

✓ Hoovers Paid Sources

✓ Company Websites

✓ Company Annual Reports

✓ White Paper Study

✓ Financial Reports

✓ Investor Presentations

✓ Regulatory Body

✓ Associations, etc.

Secondary Research Primary Research

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Research Methodology

Baseline Methodology

Our dedicated team of industry experts has monitored and analyzed various aspects of Saudi Arabia used car market. The team has analyzed

the outlook of various segments of this market, while considering the major influencing factors such as increasing focus of automakers towards

setting up used car networks in different parts of the country. The study includes market forecasting, which would enable our clients to take

better decisions while planning their strategy to achieve sustainability in this market.

Methodology Followed for Calculation of Market Size:

• Market Size By Value and Volume: Market size, in terms of value and volume, for the year 2020 was calculated based on information

collected through exhaustive secondary research and primary surveys, with various key opinion leaders/stakeholders, such as used car

suppliers, channel partners, market influencers & end users, industry experts, and other industry participants.

• The team interviewed more than 45 – 50 used car suppliers, 45 – 50 channel partners, and 15 – 20 industry experts and other value chain

stakeholders in Saudi Arabia used car market to obtain the overall market size for 2016-2020, which was validated by the Delphi technique.

Taking standard deviation into consideration, the market size was averaged out, to arrive at the market size data during 2016-2020.

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Research Methodology

• Respondents were asked about the current and future market growth rates, market shares by vehicle type, by end use, by fuel type, by company, and by each region. Removing the outlier responses, the geometric mean of growth estimates and supplier wise revenue shares generated across various segments were considered, to arrive at the final revenue shares. Revenue shares generated across various segments were further triangulated from other stakeholders.

Methodology Followed for Calculation of Market Shares:

Market shares by vehicle type, by end use, by fuel type, by company, and by each region were calculated based on the responses received through primary surveys with industry experts, in which the respondents were asked about the market shares or revenue generated from various segments of used car market. The final shares were calculated by taking the geometric mean of the responses gathered from key opinion leaders after eliminating the outliers.

Methodology Followed for Forecasting:

• TechSci Research performed periodical checks on data collected through the surveys with logic checks and analyzed the survey results in SPSS/Tableau Software.

• Data triangulation techniques were applied to fill the gaps and to present a more meaningful picture of the market. To forecast Saudi Arabia used car market, TechSci Research used various forecast techniques such as:

✓ Moving Average

✓ Time Series Analysis

✓ Regression Analysis

✓ Econometric and Judgmental Analysis

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Research Methodology

TechSci Research used its own forecast tool, which is based on the growth of various allied industries in respective regions. TechSci Research also used the impact analysis during short, medium and long term period to estimate the demand and to reach accurate market number.

Partial List of Companies Interviewed Key Secondary Sources

▪ Kayishha

▪ Yallamotor

▪ SaudiSale

▪ Abdul Latif Jameel Motors

▪ Abi Sayara

▪ Olx Saudi Arabia (Dubizzle)

▪ Carmudi.com

▪ Copart Inc.

▪ Organisation Internationale des Constructeurs d'Automobiles

▪ World Bank

▪ TechSci Research Proprietary Database & Knowledge Repository

▪ Company Annual Reports

▪ Industry Magazines

▪ Industry Reports

▪ News Dailies

▪ Credible Paid Databases

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Industry Brief

Extreme weather conditions and rising youth population is expected to drive the Saudi Arabia used car market throughout the forecast period.

According to TechSci Research report, “Saudi Arabia Used Car Market By Vehicle Type (Small Cars, Mid-Size Cars & Luxury Cars) By End Use (Institutional Vs Individual) By Fuel Type (Petrol, Diesel & CNG), By Region, Company Forecast & Opportunities, 2026”, Saudi Arabia used car market is expected to grow at a steady rate during the forecast period. The rise in presence of the youth population who are under 30 years of age is generally not capable of buying new cars thereby accelerating the demand for the used car in the region. Government authorities hiked the price of VAT from 5% to 15%, which impacted the cost of buying a new vehicle tremendously. Interested consumers traded their existing cars with the new ones which resulted in surplus sales of used cars. Saudi Arabian women are now allowed to drive vehicles on their own due to the removal of the ban on women driving and rising numbers of women driving their own cars are paving the way for the used car market growth as they are more cost-effective than the new cars. Launch of government initiatives to support the sales of fuel-efficient vehicles and offer an incentive program to authorized dealers. Original equipment service providers along with dealers are providing offers and certifications on used cars which are expected to boost the sales of used cars. Also, the offering of pre- and post-purchasing options along with options of value-added services is expected to attract consumers in buying the used car in Saudi Arabia.

The COVID-19 outbreak across the world which has been declared as a pandemic by World Health Organization has affected several countries adversely. Leading authorities-imposed lockdown restrictions and released a set of precautionary measures to contain the spread of novel coronavirus. The government imposed the closure of shopping malls, restaurants, and public parks. The growing economy faced a setback which resulted in lower used car sales. Stores were temporarily shut down and disruption in the supply chain was observed which impacted the used car sales market adversely.

However, the introduction of VAT by leading authorities is aiding to increase the general pricing and decrease the purchasing power of consumers subsequently which may pose a challenge in the growth of Saudi Arabia used car market.

Saudi Arabia used car market is segregated into vehicle type, end use, fuel type, regional distribution, and company. Based on vehicle type, market can be divided into small cars, mid-size cars & luxury cars. The luxury cars vehicle type segment is expected to account for major market share for the forecast period, 2022-2026. Consumer preference shift towards owning a vehicle and increasing affordability are driving the growth of this segment. High demand for SUVs and crossover is suitable for both hot and harsh climatic conditions and have relatively longer ownership period than the other cars. On the basis of regional analysis, the northern & central region is expected to witness growth in the next five years due to presence of large pool of youth population and working consumers who are able to afford the used cars.

Kayishha, Yallamotor, SaudiSale, Abdul Latif Jameel Motors, Abi Sayara, Olx Saudi Arabia (Dubizzle), Carmudi.com, Copart Inc., among others are some of the leading players operating in Saudi Arabia used car market. Companies operating in the market are using strategies such as joint ventures, product launches, mergers, and research collaborations to boost their share and increase their geographic reach.

“The growth of the e-commerce industry for selling used cars in Saudi Arabia is creating lucrative opportunities for the growth of the market as major players are openly providing customer-friendly interface along with the plethora of options to choose from by the listing of used car inventory online. To tap more consumers and widen the reach of cars, authorized dealers are engrossing themselves to make their presence online such as the launch of an e-commerce car service platform named SyarahOnline, which sold a large number of used cars. Market players are offering discounts along with the facility of online end-to-end transactions without having the hassle to visit the showrooms is expected to propel the market

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Sample Data - Snapshot

Saudi Arabia Used Car Market Size, By Value (USD Million) & By Volume (Million Unit), 2016–2026F

5.00 6.00 7.00 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00

10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00 100.00 110.00

2016 2020 2021E 2026F

By Value (USD Million) By Volume (Million Units)

CAGR By Value & Volume

XX%

CAGR By Value & Volume

YY%

34%34%

34%

34%34%

33%33%

33%

33%33%

33%

33%33%

2016 2017 2018 2019 2020 2021E 2022F 2023F 2024F 2025F 2026F

Small Cars Mid-Size Cars Luxury Cars Saudi Arabia Used Car Market Share, By Vehicle Type, By Volume, 2016–2026F

50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50%

Institutional Individual

Saudi Arabia Used Car Market Share, By End Use, By Volume, 2016–2026F

25%25%

25%

25%25%

25%

25%25%

25%

25%25%

25%

2016 2017 2018 2019 2020 2021E 2022F 2023F 2024F 2025F 2026F

Western Region Northern & Central Region Eastern Region Southern Region Saudi Arabia Small Used Car Market Share, By Region, By Volume, 2016–2026F

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Report Name: SAUDI ARABIA USED CAR MARKET FORECAST & OPPORTUNITIES

2016 – 2026

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About Us & Disclaimer

TechSci Research is a global market research and consulting company with offices in the US, UK and United States. TechSci Research provides market research reports in number of areas to organizations. The company uses innovative business models that focus on improving productivity, while ensuring creation of high-quality reports.

The proprietary forecasting models use various analyses of both industry-specific and macroeconomic variables on a state-by-state basis to produce a unique ‘bottom-up’

model of a country, regional and global industry prospects. Combined with the detailed analysis of company activity and industry trends, the result is a uniquely rich evaluation of the opportunities available in the market.

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The contents of this report are based on information generally available to the public from sources believed to be reliable. No representation is made that it is timely, accurate or complete. TechSci Research has taken due care and caution in compilation of data as this has been obtained from various sources including which it considers reliable and firsthand. However, TechSci Research does not guarantee the accuracy, adequacy or completeness of any information and it is not responsible for any errors or omissions or for the results obtained from the use of such information and especially states that it has no financial liability whatsoever to the subscribers / users of this report. The information herein, together with all estimates and forecasts, can change without notice. All the figures provided in this document are indicative of relative market size and are strictly for client’s internal consumption. Usage of the same for purpose other than internal will require prior approval of TechSci Research.

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SAUDI ARABIA USED CAR MARKET