“It will not have any negative impact on the market as some people think,” said Muhammad Ali Awaji, a member of the car committee at the Jeddah Chamber of Commerce and Industry (JCCI).
Awaji said the decision, which was announced on Sunday, would not have any impact on the prices of cars and spare parts. Most of these old cars and spare parts are imported from Japan, the US and Germany, he pointed out. “Some of these spare parts are returned from workshops and industrial centers,” he pointed out. Owaidah Muhammad Al-Kashi, another member of the committee, said used cars and spare parts accounted for only 5 percent of the market. “The ban on the import of used cars will have only a meager impact,” he said. He believed that the new decision would boost the Kingdom’s used spare parts market.“These decisions are taken after conducting adequate studies and are aimed at protecting the interests of consumers,” said Al-Kashi, adding that it would contribute to reducing the number of old vehicles in Saudi streets.
The Saudi Customs announced Sunday that it would ban imports of used spare parts and vehicles. The ban comes into effect on Nov. 26, the beginning of the new Hijrah year. It also said that it would ban old cars that are imported for the purpose of selling parts.
The ban will cover those cars that had been damaged because of accidents or floods. The Saudi car and spare parts market is estimated at SR9 billion ($2.4 billion) and makes an annual growth of 25 percent. The demand for cars in Saudi Arabia, the largest car market in the Middle East, is expected to grow further due to increasing economic activities in the country. In 2008, more than 140,400 used cars worth SR17.5 billion were imported.
