Saudi Arabia’s car market is drastically propelling, capturing over half of the Gulf Cooperation Council car sales and earning a position among the top 20 global markets. The Kingdom saw a significant rise in car imports in 2023, with 93,300 vehicles entering the country, up from 66,900 the previous year, as reported by Hamoud Al-Harbi from the Zakat, Tax, and Customs Authority. Japan, India, South Korea, the US, and Thailand were principal contributors to this influx.
This growth prompts questions about the specifics of vehicle preferences among Saudi consumers and the factors influencing their purchase decisions. The demand in Saudi Arabia reflects a preference for robust vehicles suited to the nation’s varied terrain and climate.
Aly Hefny, show manager at Automechanika Riyadh, points out that Saudi consumers seek vehicles that combine comfort, reliability, and status, while also considering environmental impact and technological innovation.
Karim Henain from Bain remarks on the alignment of Saudi consumer preferences with those of Western markets, driven by the tech-savvy youth. There is a rising need for vehicles featuring advanced connectivity, infotainment systems, and advance driving assistance technologies.
Matthias Zeigler, managing director of Volkswagen Middle East, notes the distinct preference for SUVs, particularly larger 7-seater models, which serve to the regional emphasis on family transportation. Volkswagen’s models like the Teramont and T-Roc are favorites in Saudi Arabia, celebrated for their driving comfort, spacious interiors, and extensive features. The upcoming Tiguan is also expected to perform well, given its focus on these core attributes.
Fuel efficiency is becoming increasingly important as petrol prices fluctuate. Zeigler mentions, “While not currently the primary decision factor, cost of ownership is an aspect we are actively considering in the development of future offerings for the Saudi market.”
Sami Malkawi, managing director of sales at Ford Middle East, observes a transformation towards smaller SUVs, such as the Ford Territory, which quickly became the Kingdom’s top-selling small SUV. He states, In fact, there are currently more than 40 types of small SUVs available in this market.”
This trend in Saudi Arabia’s automotive market is a testament to a dynamic interplay between consumer preferences, economic factors, and technological advancements, reshaping the landscape of automotive sales and consumer behavior in the Kingdom.
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