The automotive market witnessed a remarkable recovery after the decision to allow women to drive, which represents a way out for this market, which has suffered over the past two years from a decline in sales due to weak local demand in addition to being affected by the slowdown in the global economy.
A number of investors in the sector explained that the automotive market in the Kingdom witnessed increases in sales during the current month, coinciding with the imminent implementation of the decision to allow women to drive, which began last Sunday.
A number of investors in the sector explained that the sales of cars in the Kingdom witnessed increases in sales during the current month. They said that car sales rose slightly, by approximately 2 to 3% compared to the sales of previous months, and this provides an opportunity for car importers to import cars required by the female component.
They said that the number of cars in the Kingdom's automotive market increased during the current month, coinciding with the impending implementation of the decision to allow women to drive, which began last Sunday. They stated that the number of car sales in the Kingdom during the past year amounted to about 500 thousand cars, and it is expected to exceed 220 thousand cars until the end of this year, as the decision to allow women to drive entered many car agencies, in a wave of competition that used many offers and gifts, to win the satisfaction of women and motivate them to buy from them, and to exploit the renewed high demand for their goods that accompanied the imminent implementation of the decision.
A report on the future of the market and sales of the automotive sector in the Kingdom and the Gulf countries until 2019, issued by the automotive and engines unit of a global agency, revealed that there is a noticeable improvement due to the absence of any clear changes in the economic structure, with a modest growth potential that will not exceed 5%.
The report indicated that the expansion of the automotive sector in the Kingdom and the Gulf countries will not exceed 5%. He pointed out that urbanization and the increasing social requirements of Gulf families contributed to the purchase of more than one car, but the prospect of the return of large vital projects for the Gulf countries, especially the Kingdom, which require fleets of small and large cars, will revive sales and stabilize demand for cars in the coming period.
The report pointed out that there is an improvement due to the absence of any obvious changes in the economic structure, with a modest growth rate that will not exceed 5%. Saudi Arabia, which accounts for half of the GCC automotive market, has reduced its imports at moderate rates, importing 700,000 cars by the end of 2016, compared to 900,000 cars in 2015.
The report noted that GCC countries have reduced their car imports, as Saudi Arabia, which accounts for half of the GCC automotive market, has reduced its imports at moderate rates. Car sales in the Kingdom in 2017 amounted to 500 thousand cars, while it is expected to exceed 220 thousand cars by the end of this year, and the percentage of car financing loans registered in women's names is 5% of the total car financing loans.
