Saudi Arabia Automotive Aftermarket Market

Saudi Arabia Automotive Aftermarket Market is Projected to add USD 2.7 billion of revenues between 2022 to 2030, growing at a robust growth rate till 2030.

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Major Saudi Arabia Automotive Aftermarket Drivers

Saudi Arabia automotive aftermarket is majorly driven by increasing demand for vehicles, rising disposable incomes of consumers and government initiatives to support the automotive industry. In 2017, government of Saudi Arabia lifted the legal ban on female driving. This will result in substantial rise in vehicle in operation, which will create lucrative growth opportunities for Saudi Arabia automotive aftermarket, as more women are likely to drive car for travelling in future.

Prices of crude oil have increased significantly in recent years. As per World Bank’s estimates, oil prices are expected average USD 92/bbl in 2023 and USD 80/bbl in 2024. Rising oil prices will increase Saudi government’s expenditure on the economy, which in turn will boost the disposable incomes of consumers. As disposable incomes increases, consumers are more likely to spend on different goods  and services, which can increase vehicle miles travelled, thus creating demand for different automotive replacement parts.

Over the years, the demand for the automotive parts or spare parts have surged in the Middle East countries like Saudi Arabia, UAE among others, which have forced the major players to consider local production and supply chain in the country. In 2019, Apollo Tires in collaboration with Al-Jomaih Tyre Company entered into an agreement for entering Saudi Arabia. The new agreement will be focused on bus and passenger car markets. The company has set a very aggressive target of selling nearly 800,000 tires per annum, including both commercial vehicle and passenger vehicle tires, over the next five years.

Restraint in the Saudi Arabia Automotive Aftermarket

However, the combined impact of COVID-19 and the increase in VAT has resulted in 30%-35% decrease in new car sales in 2020, compared to the previous year. ​Such factor has impacted the market growth.

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Vehicle Type – Segment Analysis

Based on vehicle type, the passenger vehicles occupied the largest market share in the automotive aftermarket in Saudi Arabia in 2020. The sales of the passenger cars are driven by expanding road infrastructure and increasing per capita spending of the people in the region. Additionally, rising expat population and growing demand for pre-owned cars is further supplementing growth.

Replacement Part – Segment Analysis

Based on replacement part, tires occupied substantial market share in the automotive aftermarket industry in Saudi Arabia in 2020. Since tires goes through large amount of wear and tear, replacement of tires is necessary in order to improve the vehicle performance. In 2019, Pirelli started to deliver multiple services directly to the customer’s convenient location in Saudi Arabia. The services include fitting & removing tires, wheel balancing, inflating tires with air or nitrogen, and battery change. Some of the leading companies offering automotive tires in Saudi Arabia are GoodYear, Michelin, Continental Middle East, among others.

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Top Market Players

Some of the major companies in the Saudi Arabia Automotive Aftermarket includes 3M Saudi Arabia, Continental Middle East, Delphi Technologies, DENSO Corporation, Michelin, General Motors, Robert Bosch Middle East FZE, GoodYear, Abdul Latif Jameel IPR Company Limited. and Ford Motor Company. 

Key Developments:

• • In August 2021, Nissan Saudi Arabia announced that it has launched its online service, which will provide more convenience to its customers for booking car services.
  • In 2018, Ford added a new distributor in KSA to further enhance its customer reach in the country. The company announced Yousuf Naghi Motors Co., as the second distributor and will join the existing distributor Al Jazirah Vehicles Agencies Co. The company’s services include the sale of original Ford and MotorCraft parts and the sale and service of Ford vehicles.
  • In 2018, Abdul Latif Jameel Motors announced opening of a new Toyota and Lexus service facility in Hofuf, Saudi Arabia. The site hosts a customer-centric indoor showroom and an outdoor area that displays approved used Toyota and Lexus cars, and provides a full spectrum offering of ‘sales, service and spare parts’ (3S).​

Segments covered in the Report:

The Saudi Arabia Automotive Aftermarket has been segmented on the basis of vehicle type, certification, replacement part. Based on the vehicle type, the market has been segmented into commercial vehicles and passenger vehicles. By replacement parts, the market is segmented into tire, battery, brake parts, filters, Lighting Components, Electronic components, Lubricants, Clutch Parts, Engine Components and others. Based on certification, the market has been segmented into Genuine Parts, Certified Parts, Counterfeit Parts, Others.

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Market Segmentation

Saudi Arabia Automotive Aftermarket by Vehicle Type

• • Commercial Vehicles
  • Passenger Vehicles

Saudi Arabia Automotive Aftermarket by Replacement Parts

• • Tire
  • Battery
  • Brake Parts
  • Filters
    • Air Filter​
    • Oil Filter​
    • Others​
  • Lighting Components​
  • Electronic components​
  • Lubricants​
  • Clutch Parts​
  • Engine Components
    • Timing Belt​
    • Spark Plugs​
    • Others​
  • Others

Saudi Arabia Automotive Aftermarket by Certification

• • Genuine Parts
  • Certified Parts
  • Counterfeit Parts
  • Others