Car dealerships: New KSA drive to boost competition

The Ministry of Commerce and Industry is studying the possibility of increasing the number of car dealers (agents) in the Kingdom as part of efforts to promote competition, local media reported.
The ministry is introducing a series of measures to improve the performance of the car sector as the Kingdom is considered the most attractive auto market in the Middle East, Al-Sharq Al-Awsat daily said.
The Kingdom may also possibly allow global auto makers to open offices and mega sales centers in the Kingdom.
The stronger presence of global giants in some GCC states makes car prices cheaper in those countries than that of local markets, said the sources cited by the report.
The new developments reportedly come on the back of a recent decision announced by the Ministry of Commerce and Industry on preliminary rulings against three car dealers that broke commitments made to customers, the media report said.
Commence and Industry Minister Tawfiq Al-Rabiah earlier set up a penalty enforcement commission aimed to protect customers in terms of car dealers’ commitment to supply spare parts, ensure quality and provide the required services.
Mutlaq Al-Hamdan, an expert on car sales on installment schemes, said end prices in the market had recently shown considerable decline following the ministry’s decisions on the car services sector.
The Ministry has earlier announce measures to ensure that car dealers, distributors and importers complied with maintenance and guarantee regulations.
The Kingdom has officially invited a number of US auto makers to increase the number of car agents and dealers in the Kingdom.
This step will presumably expand into other Japanese, German and South Korean car manufactures, the media said.