JEDDAH, 19 November 2004 — Saudi Arabia imports more than 300,000 cars with a total value of over SR30 billion annually, according to Muhammad Al-Husseini, deputy general manager of the Riyadh Exhibition Company.
He said his company would organize an international auto exhibition in the capital from Dec. 15 to 19. The participants will include international car manufactures, suppliers of car spare parts, providers of maintenance services and insurance firms.
“The exhibition is important as it is held in one of the Middle East’s largest auto markets,” said Husseini. “The auto show in Riyadh is one of the important annual events in the Kingdom,” he added.
The exhibition attracts most automobile manufacturers around the world as well as a large number of people who wanted to know the latest developments in the auto world. He expected the show to draw more than 100,000 visitors. The exhibits will include latest sedans and wagons, four-wheel-drive vehicles, light trucks, motor bikes, electrical and electronic equipment, decoration materials, car paints, batteries, and entertainment devices.
Major participants include Toyota, Nissan, Mitsubishi, Honda, Hyundai, Peugeot, Isuzu and Tata. Many companies from India, China, Turkey and other countries are interested to take part to market their products in the Kingdom.
Abdullah Al-Oqail, supervisor of the auto show, said a number of insurance companies that provide mandatory car insurance as well as a number of banks and installment service firms would also take part in the five-day event.
Husseini estimated the Kingdom’s auto spare parts market at SR8 billion. Japan holds the highest stake in the automobile parts market with 36 percent, followed by the United States with 25 percent, Germany 15 percent and South Korea eight percent.
The automobile market in Saudi Arabia is the largest in the Middle East. Exploding demographics and changing social patterns are forcing Saudi households to acquire more cars per family.
Although Japanese models continue to be the largest sellers in the Kingdom, American cars follow closely with a 30 percent market share. Other suppliers include South Korea, Germany, France and Malaysia.
New cars and SUVs represent almost 46 percent of the market. Used cars account for about a quarter of the market but only 13 percent of the value. The United States and Germany lead in used cars sales to Saudi Arabia, with Japan also having a significant share. GM, Ford, and Chrysler’s Jeep brands are among the most popular vehicles in the country. With improved road conditions and better maintenance facilities, car lifetime in the Kingdom has almost doubled to 10 years. The aggressive Saudi driving style leads to excessive wear and tear, and the accident rate in Saudi Arabia is one of the highest in the world.
There are over 200 dealers supplying automotive parts for Japanese, American, European and Asian automobile companies in Saudi Arabia. The Saudi government levies a five percent customs tariff on all automobiles and auto aftermarket imports.
