Saudi Arabia’s automotive sector is set for massive growth, with 20 percent of the female population, or three million drivers, set to hit the road by 2020, according to a report.
A whitepaper, published by global research company, Aranca, said the lift of the ban on females driving in Saudi Arabia, the recovering oil prices and the economic reforms to encourage consumer spending will result in an increase in car sales by eight percent per annum until 2022.
The report also said that the introduction of a new customer segment in the automotive sector will be felt in the economy, as it was valued at $7.4 billion in 2017.
According to Aranca, there were 7.3 million vehicles in Saudi Arabia in 2017, with 438,000 new passenger cars and 110,000 new commercial vehicles sold that year.
Spare parts account for a great part of the automotive sector, with tyres making the largest part of revenue in the spare parts market with a 30 percent share in 2017, worth $2.2 billion.
According to Aranca, 10 million vehicles will be on Saudi roads by 2022, including 6.5 million passenger vehicles and 3.5 million commercial vehicles.
They also added that the demand for spare parts and related auto services will grow six percent annually, reaching a value of $9.8 billion in 2022.
It also noted that many of these opportunities will be held in the western region of Madinah and Makkah, where one million women are expected to drive by 2022.
Mahmut Gazi Bilikozen, Automechanika Jeddah’s show director, said: “Consumption of auto spare parts and services in Saudi Arabia will grow at a healthy rate in the coming years, aided by the addition of a whole new segment of the population that is now allowed to drive.”