Saudi Arabia Gearing Up to produce 10,000 vehicles in 2023
According to a recent report, vehicle sales in the Saudi market are expected to increase to around 619,000 vehicles by 2025, due to rising demand.
This is due to an increase in the percentage of women driving cars, higher income levels, people returning to work after the Corona pandemic, and the expansion of tourist destinations for both local and international visitors.
The Saudi National Automobile Industry Company predicted that 5,000 to 10,000 cars would be produced by the second half of 2023, and 30,000 vehicles would be produced by 2030.
According to the report, the proportion of commercial vehicles will increase due to increased demand for car rental and the revival of construction activity stimulated by Vision 2030 diversification projects.
According to a report released by US Saudi Business Council, the recovery in new vehicle sales, combined with the expansion of local manufacturing capabilities, has increased the Kingdom’s rank as the largest car market in the GCC region, with a market share of nearly 50%.
According to the International Organization of Automobile Manufacturers, the kingdom sold 557,000 new vehicles in 2021.
Passenger vehicles accounted for roughly 86% of imported vehicles, and new vehicle sales and registrations increased by 23% year on year, outpacing neighboring countries.
Domestic vehicle sales in the Kingdom increased by 3% over pre-Corona pandemic levels. “Demand for new vehicles is expected to remain strong until 2025, with sales reaching around 619,000 units,” said Al-Baraa Al-Wazir, director of economic research at the Saudi American Business Council.
Despite ranking 23rd among the world’s largest car markets, the Kingdom is the only one of the top 25 without a significant domestic manufacturing sector. The Kingdom has made significant progress in its efforts to become a regional manufacturing hub, with the National Industrial Development, Logistics Program, and the Industrial Clusters Program guiding its strategic objectives to develop local car manufacturing capabilities.
