Independent 5 year Automotive industry forecasts for Saudi Arabia.
Original Automotive market research and Automotive sector trend analysis for the Saudi Arabia Automotive industry.
Competitive intelligence, Saudi Automotive company rankings and SWOT analyses on international and domestic Automotive companies in Saudi Arabia .
The Saudi Arabia Automotives Report has been researched at source, and features latest-available data covering production, sales, imports and exports; 5-year industry forecasts through end- ; company rankings and competitive landscapes for multinational and local manufacturers and suppliers; and analysis of latest industry developments, trends and regulatory changes.
Business Monitor International’s Saudi Automotives Report provides industry professionals and strategists, corporate analysts, auto associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on the Saudi automotives market.
Key Benefits of Report
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Benchmark BMI’s independent 5-year Automotives Industry forecasts on Saudi Arabia to test other views – a key input for successful budgetary and planning in the Saudi Automotives market.
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Target Business Opportunities & Risks in the Saudi Automotives sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Saudi Arabia .
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Exploit the Latest Competitive Saudi Automotives Intelligence & company SWOTS on your competitors and peers through company rankings by production, sales, market share and ownership structure – includes multi national and national companies in Saudi Arabia .
Coverage
Executive Summary & Swot Analysis
Summary of BMI’s key industry forecasts and trend analysis, and commentary on key company and industry headline events. Collection of SWOT studies on local automotives market, economy and business environment.
Regional Overview
Cross-border analysis on the structure, size and value of the automotives sector, including comparative historical data and forecasts on the region’s sales and production figures.
Business Environment Rankings
Comparative guide to the region’s business environment, ranking of the regional markets by CBU Output Growth, Vehicle Penetration Potential, Regulation, Market Competition, Economics Risk and Politics Risk. The rankings table provides BMI’s view on the competitiveness of the regional markets.
Market Overview
Outlook of local market, commenting on its structure, size and value.
BMI 5-Year Industry Forecast
Historic data series and 5-year forecasts to end- for all key industry indicators (see list below), supported by explicit assumptions, plus analysis of key downside risks to the main forecast, including: Total production value (US$bn); total production of units; production by vehicle-type, including cars, commercial vehicles, trucks and buses; total sales value (US$bn); sales by vehicle-type, including passenger cars and commercial vehicles (vans and microbuses, pickups, trucks and buses, 4 wheel drive); total exports by value (US$bn) and by units; total imports by value (US$bn) and by units; contribution to GDP; employment in industry.
BMI 5-Year Macroeconomic Forecast
BMI forecasts for all headline macroeconomic indicators, including real GDP growth, inflation, fiscal balance, trade balance, current account and external debt.
Competitive Landscape
Comparative company analyses and rankings by production, sales, % market share, employees, registration date and ownership structure.
Company Profiles & SWOTS
Company profiles, including SWOT (Strengths, Weaknesses, Opportunities & Threats)analyses, fully researched senior executives and full contact details, business activity, leading products and services.
Executive Summary
Saudi Arabia will be one of the few places in the world where automotive sales will increase in 2009, with BMI forecasting growth of 3.5%.
Reports in the Saudi media indicated a slump in sales in the first few weeks of 2009, but signs of recovery were seen in February, suggesting that the market had passed a low-point. Saudi consumers are more likely to make cash purchases than those in the United Arab Emirates (UAE). This tendency will help partly insulate the market from the effects of the credit crunch, with cash transactions set to represent the majority of purchases over the near-term, compared with less than a third of purchases in the UAE.
Although the Saudi market has never been comparable to the kind of sales growth seen in the UAE, it has proven to be resilient in the face of shocks. BMI is relatively positive on Saudi Arabia compared with some of its neighbours: it will suffer less from the population shrinkage we expect for the UAE and Qatar, and strong domestic need for housing will keep its real estate sector from experiencing the same degree of correction. GDP growth is forecast at 2.1%, giving a solid basis for a recovery in the market. Automotive sales should total over 610,000 units with passenger car sales up 2.4% and commercial vehicle sales up 7.9%. BMI expects that by 2013, automotive sales should top 880,000 units, up nearly 50% on 2008 levels. Market revival from 2010 will be spurred on by increased lending, with car loans to rise from under 50% to over 70% of car sales, which has been typical of other Gulf markets. Car loans will become common as the consumer loans market develops and car dealers seek to co-ordinate with banks.
Aside from a relatively favourable economic environment in very difficult circumstances, there are other factors supporting sales growth in 2009, such as restrictions on the age of imported used vehicles. Downside risks include the possibility of rises in car prices. In a fairly elastic market, consumers are more interested in buying cars based on price rather than prestige; prices will determine the pace of growth. If prices rise by 10% or more, BMI believes that the recovery in sales will be delayed and demand will remain flat or even decline over the year.
Saudi Arabia scores 55.8 points (out of a theoretical maximum of 100) in the BMI Automotive Business Environment Ratings this quarter, up 1.5 points on the previous quarter due to the stabilisation of the car market after passing a low in January. This puts it 1.7 points ahead of Kuwait and 0.8 points behind South Africa, retaining its fourth place rating. The country falls behind other Gulf states due to its lower country structure score, influenced in particular by the labour market. A lack of automotive production and stringent foreign-ownership laws also weigh down Saudi Arabia’s score. On the upside, despite being the largest automotive market in the Gulf, it has the best penetration potential due to a low per-capita rate of vehicle ownership, partly due to the ban on women driving. However, the introduction of pending legislation allowing women to drive would help raise vehicle ownership significantly. Saudi Arabia’s score will also benefit if it establishes large-scale automotive production facilities.
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