Car sales across Saudi Arabia are poised to reach SR90 billion in the next five years as the annual growth rates in the sector will range between 9-10 percent per year, local media said quoting an expert.

The number of sold cars in the Saudi market will touch one million units per year in the period, Director General of Auto General Company (AutoStar) Abdullah Al-Bathi told Al-Riyadh daily.

The big competition in the auto market is a healthy phenomenon, which was positively reflected on consumers; however the counterfeit and fake auto parts pose a serious risk to the sector in the Kingdom, he was quoted as saying.

He enumerated a series of factors affecting the auto market in the Kingdom, including the increased government spending on infrastructure projects and new economic cities, restrictions imposed on life span of the imported cars, population growth, and per capita purchasing power, which will boost the Kingdom’s position as a global excellence center for auto trade.

On the impact of competition on services and pricing, the AutoStar chief said it had a positive aspect between car makers and agents that would, in turn, encourage the well-established companies to provide creative services and products to customers.

Referring to his company’s plans, he said: “We have embarked on an ambitious expansion plan in the current year, including the opening of new 30 branches for car sales, eight service centers, 36 spare parts stores, and five car accessory sales rooms.”