Saudi Arabia Used Car Market Outlook to 2026F- Driven by Boom in Online Platforms and increase in internet and smartphone penetration

Saudi Arabia Used Car Market Outlook to 2026F- Driven by Boom in Online Platforms and increase in internet and smartphone penetration

The report titled “Saudi Arabia Used Car Market Outlook to 2026F- Driven by Boom in Online Platforms and increase in internet and smartphone penetration” provides a comprehensive analysis of the status of the used car industry in Saudi Arabia. The report covers various aspect of the industry, revenue generated by the KSA Used Car Market, its segmentation viz, By Market Structure (Organized & Unorganized), By Type of Car (Sedans & Hatchbacks, SUVs & Crossovers, Pick-ups and Luxury), By Brand (Toyota, Hyundai, GMC & Chevrolet, Ford, and Others), By Age of Vehicle (Less than 1 year, 1-3 years, 3-5 years & More than 5 years), By Kilometers Driven (Less than 50,000 Km, 50,000-80,000 Km, 80,000-150,000 Km & More than 150,000 Km) and By Region (Northern, Southern, Central, Eastern and Western), business models, major trends and development, issues and challenges, technological advancements and competition analysis. Saudi Arabia Used Car Market report concludes with projections for the future of the industry including forecasted sales volume & gross transaction value by 2026, future market segmentation, Covid-19 impact, emerging online used car models, international case studies, and analysts’ take on the future.The report titled “Saudi Arabia Used Car Market Outlook to 2026F- Driven by Boom in Online Platforms and increase in internet and smartphone penetration” provides a comprehensive analysis of the status of the used car industry in Saudi Arabia. The report covers various aspect of the industry, revenue generated by the KSA Used Car Market, its segmentation viz, By Market Structure (Organized & Unorganized), By Type of Car (Sedans & Hatchbacks, SUVs & Crossovers, Pick-ups and Luxury), By Brand (Toyota, Hyundai, GMC & Chevrolet, Ford, and Others), By Age of Vehicle (Less than 1 year, 1-3 years, 3-5 years & More than 5 years), By Kilometers Driven (Less than 50,000 Km, 50,000-80,000 Km, 80,000-150,000 Km & More than 150,000 Km) and By Region (Northern, Southern, Central, Eastern and Western), business models, major trends and development, issues and challenges, technological advancements and competition analysis. Saudi Arabia Used Car Market report concludes with projections for the future of the industry including forecasted sales volume & gross transaction value by 2026, future market segmentation, Covid-19 impact, emerging online used car models, international case studies, and analysts’ take on the future.

KSA Used Car Market Overview and Size

The used car industry in Saudi Arabia has grown at a notable CAGR on the basis of gross transaction value and sales volume over the period 2017-2021. The availability of multiple financing options, booming growth of online classified and auction market and increasing smartphone and internet penetration led to the increase in sales from 2017-2021. The addition of women drivers and the high levels of disposable income in the country are some of the major growth drivers of the industry.

KSA Used Car Market Segmentations

By Market Structure: The industry in Saudi Arabia is largely unorganized due to the preference of consumers towards peer-to-peer sales, largely facilitated by online auto-classified platforms. The organized market comprises of large authorized brand dealerships as well as multi-brand outlets and exhibitions.

By Sales Channel: The unorganized sector contributed to the majority of the sales of used car in the country. This higher preference for Unorganized sector was because used cars are cheaper on these platform and customers save 15% VAT charged by Organized players. Over time preference towards organised is increasing due to more convenient buying experience and value added services (warranty, certification).

By Type of Cars: Sedans and hatchback were observed to dominate the used car market on the basis of sales volume as they are economical and suitable for almost all kinds of buyers. SUVs & crossovers were found to be the second most preferred types of cars in the country and pick-ups & luxury cars contributed to the remaining sales.

By Car Brands: Toyota continues to dominate the used car market in Saudi Arabia due to the higher preference of the consumers towards the brand for its reliability and low maintenance. Also, the easy availability of spare parts and the higher residual value of Toyota cars contribute to higher sales. Hyundai contributed to the second-highest sales volume in 2021

By Age of Vehicle: Three to five-year-old used cars were observed to dominate the used car sales in the country in 2021. As the installment period for cars purchased on finance is around 3-5 years after which people usually prefer to sell off their cars. 1-3-year-old vehicles contributed to the second-highest sales volume as a large number of these cars found their way to the used car market when car rental companies’ de-fleet their existing fleet.

By Kilometers Driven: A large proportion of the used cars sold in 2021 belonged to the category of 80,000-150,000 kilometers. Cars with a mileage of 50,000-80,000 kilometers were also largely preferred by the consumers due to their nearly new look and feel and are also economical.

By Regions: The central region including the capital of Riyadh accounted for the highest number of used car sales in the country in 2021 due to the concentration of the young working population in the region. The western region contributed the second-highest used car sales. Most of the major authorized dealers have multiple showrooms in these regions.

By Age Group of Buyers: The majority of the buyers in the used car market were observed to be in the age group 30-60 years. Many young working professionals, expatriates, families owning multiple cars belong to this age group. The demand for used cars among the age group of 18-30 years is also increasing with increasing disposable income and job opportunities.

Saudi Arabia Organized Market Segmentation

By Sales Channel: The unorganized sector contributed to the majority of the sales of used car in the country. This higher preference for Unorganized sector was because used cars are cheaper on these platform and customers save 15% VAT charged by Organized players. Over time preference towards organized is increasing due to more convenient buying experience and value added services (warranty, certification).

Competitive Landscape of KSA Used Car Market:

The industry is highly fragmented and competitive with 2,200+ dealerships operating in the market. Many brands have a certified pre-owned car program in place in the country. Amongst the brand authorized dealerships, the top 6 players including Abdul Latif Jameel Motors, Aljomaih Automotive Company, Al Jazirah Vehicles, Universal Motors & Gulf Advantage are analyzed to account for almost half of the used car sales through the authorized dealerships. These players compete on the basis of parameters such as geographical presence, value-added services offered, financing option, after-sales services offered, dealership network, and more.

KSA E-Commerce Logistics Market Future Outlook and Projections

The used car industry is expected to recover from the Covid-19 pandemic and witness growth by 2026. The increasing demand from smaller cities such as Jazan, Arar among others is expected to drive the growth of the industry. The growing traction towards online platforms is expected to compel dealerships to expand their presence online. Online platforms are expected to leverage the latest technologies such as artificial intelligence & virtual reality to enhance the user browsing experience. The overall used to new car sales ratio in the country is also expected to improve in the future.

KSA Used Car Market

By Market Structure

Organized Sector
OEM Certified Dealers
Multi-Brand Non-Franchise Dealerships
Auction Companies
Unorganized Sector
C2C
Local Dealers

By Type of Car

Sedan and Hatchback
Suv
Pickup trucks
Luxury

By Manufacturer

Toyota
Hyundai
Ford
Chevrolet
GMC
Nissan
Kia

By Kms Driven
<50,000
50,000-80,000
80,000-150,000
>150,000

By Age of Vehicle

1-2 years
3-5 years
>5 years

By City

Northern
Southern
Central
Western
Eastern

By Age of the Consumer:

18-34
35-54
55+

By Age of the Consumer:

Female
Male
Key Target Audience
Used Car Companies
OEMs
Multi-Brands
Online Used Car Portals
Used Car Financing Companies
Government Bodies
Investors & Venture Capital Firms
Used Car Dealerships
Used Car Industry
Used Car Manufacturing Companies
Used Car Distributors
Used Car Auction Houses
Used Car Associations

Time Period Captured in the Report:

Historical Year: 2017–2021
Base Year: 2021
Forecast Period: 2021–2026F

Companies Covered:

Online Auto-Classified
Expatriates
Expat
Haraj
Opensooq
Mourjan
YallaMotors
Motory
SellAnyCar
Syarah
CarsSwitch
Carnab
OLX
Saudisale
Halta2ee
Major Auction Companies
Abdulla Fouad Company of Public Auctions Car Sales
Sultan Nasser Auctioneers Est
AutoWorld (AKA Al Jazira Equipment Co.Ltd)
Saud Qahtani Auction Company
Motory
Syarah
Mozayada
budgetsaudi
Mazadhala
Major Finance Institution
Alinma Bank
Riyad Bank
ANB Leasing Bank
Emirates NBD Auto Lease Bank
Al Rajhi Bank
National Commercial Bank
Saudi Investment Bank
Bank Albilad
Al Yusr
Taajeer Finance Company
Abdul Latif Jameel
Al-Tayseer Car Finance
Major Finance Institution
Abdul Latif Jameel
Aljomaih Automotive Company
Al Jazirah Vehicle
Mohamed Yousuf Naghi
United Motors Company
Universal Motors Agencies
SAMACO Automotive
Petromin Stellantis

Key Topics Covered in the Report

KSA Automotive Market Overview
KSA Used Car Market Overview
KSA Online E-commerce Used Car Market
Market Ecosystem
Value chain Analysis
Customer Buying Journey in KSA
Decision Making Parameters for Customers
Offline and Online Business Models
Detailed Analysis on KSA Used Car Market (Market Size, 2021; Market Structure; Market Segmentations; Competition; Future Market Size, 2026; Future Trends and the Way Forward
Snapshot on Online Used Car Platforms in KSA
Snapshot of Used Car Auction House in KSA
Snapshot of Used Car Finance Market in KSA
Business Opportunity (Customer Profile Analysis)
Recommendations (Sales and Marketing Strategies, Positioning Strategies, Business Framework)