Care sale 10% increase with woman driving countdown begins and dealerships import more than 230,000 new cars in five months
As we are eight days close to the woman driving decision's entry into force, a number of workers in the automotive sector asserted that the decision would contribute to increasing the sector's sales by 10%, and the hybrid and electric cars' access into the local market after completing the construction of the electric charging stations. They said that 75% of the Kingdom's cars go to the most expensive ones while importation of cheaper cars takes 25%, expecting that 15% of the Saudi women will tend to buy used cars. In return, local banks will witness car demands with closed-end leasing
Faissal Abou Shusha, Head of the National Committee of Car Dealers at the Council of Saudi Chambers of Commerce and Industry, revealed that the sales of new cars have increased by 10%, influenced by the decision of allowing women to drive cars. He pointed out that 75% of car imports in the Kingdom go to the most expensive cars, while cheaper cars' imports take 25%.
Abou Shusha expected a decline in importing the most expensive cars and an increase in importing cheaper and less fuel-consuming cars after the increase in fuel prices in the Kingdom. He pointed out meanwhile that there is a trend to import hybrid cars and electric cars in the Kingdom but it will take time for completing the construction of electric charging stations.
He added that the decision to allow women to drive cars will have big positive effects on the whole sector of vehicle sales, and related maintenance and others, but it is still too early to talk about the amount of that ratio, expecting increase in used cars supply in the Kingdom after the exit of large numbers of foreigners.
Dealerships import more than 230,000 new cars in five months
For his part, Investor in the automotive sector Mohammed Al-Qahtani, said that the market will see an increase in car imports within the coming period by 50% compared to the last year, pointing out that the value of car imports in last year, which totaled up to more than SR 34 billion will increase by 20%.
With regard to the market future, Al-Qahtani said that the women segment access will revive the car market and increase the competition and there will be high focus on the new cars. Moreover, importation of cars in unusual colors will increase in the local market. He expected that 15% of the Saudi women will buy used cars. In return, local banks will witness car demands with closed-end leasing.
He asserted that auto manufacturers have started additional modifications to the vehicles to suit the Saudi women, and their age group. He pointed out that there are some differences between male and female vehicles in the interior and exterior colors of the car, as well as the internal accessories.
For his part, Official Spokesman of the Customs Department, Issa Al-Issa, said that the number of the Kingdom's car imports from the beginning of 2018 to the end of May amounted to 231631 cars from abroad. He pointed out that the main exporting countries were Japan, South Korea, the United States, Thailand, India, Indonesia, China, Taiwan, Canada, Germany, Turkey, the Czech Republic, the United Kingdom and Mexico.
It's noted that the number of cars imported during 2017 amounted to 442846 cars, and SR 34.11 billion were paid. This value was paid for importing 442,846 cars from abroad. The number of cars that prevented from entry amounted to 186 cars during that period. French, Hungarian and Austrian cars come down the list of new cars with 422 cars for France, 215 for Hungary, 202 cars for Austria and 65 cars for Fiji. Meanwhile, the number of new cars coming from Taiwan amounted to 36,303, India 27,419, China 17,684, 13,453, Canada 13.453, Mexico 12. 697, the Czech Republic 7683, Germany 7272, Morocco 5813, Slovakia 3908, South Africa 3829, Britain 2531 and Turkey 2274.
German used cars took the highest percentage of imports by the Saudis with 12081 cars, the 11811 U.S cars, 5186 Japanese cars, 1644 Korean cars, then 1621 Australian cars, and 1332 Swedish cars.