Saudi Arabia Automotive Aftermarket Market – Opportunities and Forecast 2021-2028

Saudi Arabia Automotive Aftermarket Market

The Saudi Arabia automotive aftermarket is projected to expand at a growth rate of 4% to10% during the analysis period. The augmenting demand for pre-owned vehicles and the accelerating ex-pat population will compel the market growth.

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Saudi Arabia Automotive Aftermarket Market Dynamics

The withdrawal of the legal ban imposed on female driving has substantially raised the vehicle parc and the sales of preowned and new automotive in Saudi Arabia. This sudden surge has contributed to the growth of the spare parts and automotive sector in Saudi Arabia. Also, over the years, the demand for spare or automotive parts has risen in the Middle East countries such as the UAE and Saudi Arabia, which has compelled the leading players to consider local supply chain and production in the nation. For example, Apollo, in 2019, in partnership with Al-Jomaih Tyre Company, enrolled for an agreement to enter Saudi Arabia. The new agreement will be intended on passenger car markets. The company has prepared a very aggressive objective of selling nearly 800,000 tires per year, including commercial and passenger vehicle tires, over the next five years.

However, the effect of the coronavirus crisis and the increase in Value Added Tax has led to a 30-35% reduction in the sales of new cars in 2020 over the last year. Thus, this factor has hindered market growth.

Replacement Part Segment Drivers

Based on the replacement part, the tires segment accounted for a significant share in the automotive aftermarket sector in 2020. As tires experience a huge amount of wear and tear, their replacement is necessary to enhance the vehicle’s performance. Pirelli, in 2019, started to offer several services directly to the location convenient to the customers in Saudi Arabia. Also, the prevalence of various leading players in Saudi Arabia, such Michelin, Continental Middle East, and GoodYear, will stimulate market growth.

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