Saudi Arabia Used Car Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 6.41 Billion |
| Market Size (2029) | USD 9.03 Billion |
| CAGR (2024 - 2029) | > 7.10 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Saudi Arabia Used Car Market Analysis
The Saudi Arabia Used Car Market size is estimated at USD 6.41 billion in 2024, and is expected to reach USD 9.03 billion by 2029, growing at a CAGR of greater than 7.10% during the forecast period (2024-2029).
Over the medium term, factors such as the improved quality of used cars, the large number of expatriates, and affordable rates available for used cars are expected to stand as primary driving factors of the market. However, lack of trust during the purchase of a used car and lack of standardization are expected to act as major restraints to the market's growth.
Other factors like increasing urbanization and an increase in internet and smartphone usage have paved the way for a rise in the online usage of various platforms. For example:
According to the Communications, Space, and Technology Commission (CST), internet usage in Saudi Arabia reached 98.6% of the population in 2023.
Considering the advancements, used car owners can use digital channels to effectively showcase their cars by providing necessary details, thus propelling consumer-to-consumer business models.
Various companies are purchasing and selling used cars without acting as an intermediary using digital platforms. These platforms also provide home inspection services and sell used cars through a digital auction process.
Saudi Arabia is the fifth-largest country in the Middle East and one of the key countries in the region. The region has always favored the adoption of used/pre-owned cars due to the rising demand for affordable luxury cars in the used car segment. Consumers in Saudi Arabia prefer used cars over pre-owned ones as these cars offer them better prices, easy financing, and aftermarket maintenance support. Players, including organized and unorganized members offering vehicles, provide consumer engagement programs and competitive discounts to promote used car sales in Saudi Arabia.
Considering these prime factors, the demand for used cars in Saudi Arabia is expected to remain high during the forecast period.
Saudi Arabia Used Car Market Trends
Sports Utility Vehicles (SUVs) Segmented to Gain Momentum
Over the long term, factors such as rising consumer inclination toward comfort and automatic safety features, higher ground clearance, commanding driver seating position, robustness, and off-road driving capabilities are projected to drive the sports utility vehicles (SUVs) segment of the used car market in Saudi Arabia.
The demand for mid-size SUVs is high as they come with multiple engine variants with internal combustion engines and electric options for better fuel economy. Additionally, these vehicles are provided with various transmission options, creating a positive impact on the market.
Other factors, such as the growing adoption of electric SUVs and rapid developments in the market, are expected to drive market growth.
Saudi Arabia has witnessed an exponential rise in SUV ownership, resulting in a larger customer base. Considering this scenario, OEM companies are also focusing on capacity expansions in Saudi Arabia to manufacture SUVs, which may create new opportunities for used cars in the future, as more people will sell their used SUVs for further upgrades and more options will be available to the buyers for used cars. For example, in October 2023, Hyundai and PIF entered a joint venture to establish a vehicle manufacturing plant in Saudi Arabia.
The rising urbanization, the growing tourism sector, and other upcoming projects, coupled with a high demand for SUVs with modern features, are driving the segment’s growth.
The country is seeing an exponential rise in vehicle leasing ownership. Many companies in the country have updated their product portfolios of next-generation SUVs with a wide range of compact SUVs and luxury SUVs powered by various propulsion types.
For example, Yalla Motor and CarSwitch upgraded their used car portfolios with budget and luxury cars. They are also providing various digital services and adopting strategic moves to expand and stay competitive.
Online Sales Channel to Play a Key Role in the Market
The rising number of internet users with increasing smartphone penetration, coupled with the convenience of availing digital services for used car platforms, serves as significant determinants for the growth of this market segment.
Consumers increasingly prefer the online channel as they can avoid the hassle of visiting physical locations and comparing prices, car makes, and models from different platforms through browsing.
These online channels also offer doorstep delivery within the promised time and a wide collection of cars from different makes and models.
There are various online marketplaces that have direct sale-to-consumer models and virtual showrooms, thus increasing the competition. Due to this shift in the method, online services do not need a real store, as these services can be managed with a good customer assistance team and personalized operations. Considering the intense competition, various companies are also developing advanced features to cater to the demand.
- In October 2023, CAFU expanded its services into the car acquisition space by launching its platform with CAFU Cars, its latest venture into the online used car marketplace for buying and selling used cars. It has additional features like spot fueling and pressure wash.
Such developments are expected to boost the market’s growth in the coming years.
Saudi Arabia Used Car Industry Overview
The Saudi Arabian used car market is consolidated and led by global and regionally established players. The companies adopt strategies such as new product launches, collaborations, and mergers to sustain their market positions. For instance:
- In June 2023, Seera Group Holding’s car rental and leasing unit, Lumi Rental Company, announced the launch of its second used car sales showroom, further expanding its used car sales footprint in Saudi Arabia to meet strong demand.
Some of the major players in the market include Yalla Motor, CarSwitch, Halta2ee, SaudiSale, and Abdul Latif Jameel Motors.
Saudi Arabia Used Car Market Leaders
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Yalla Motor
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CarSwitch
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Halta2ee
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SaudiSale
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Abdul Latif Jameel Motors
*Disclaimer: Major Players sorted in no particular order
Saudi Arabia Used Car Market News
- October 2023: Syarah, the leading online used car e-commerce platform in Saudi Arabia, announced the grand opening of its car refurbishing and servicing center to sell used cars in order to meet the huge and growing demand in the market.
- January 2023: Kavak focused on technological advancements in the used car market by integrating e-commerce and physical retail experience, along with data-driven operations, making it one of the first-of-its-kind car retail experiences in Saudi Arabia.
Saudi Arabia Used Car Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Increasing Penetration of SUVs in the Used Car Market
4.2 Market Restraints
4.2.1 Competition from Other Forms of Transportation
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size in Value - USD)
5.1 Vehicle Type
5.1.1 Hatchbacks
5.1.2 Sedans
5.1.3 SUVs and MUVs
5.1.4
5.2 Sales Channel
5.2.1 Online
5.2.2 Offline
5.3 Vendor Type
5.3.1 Organized
5.3.2 Unorganized
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Al-Futtaim Group
6.2.2 Dubizzle Motors LLC
6.2.3 Abdul Latif Jameel Motors
6.2.4 Yalla Motors
6.2.5 Al Nabooda Automobiles LLC
6.2.6 OLX
6.2.7 AlTayer Motors
6.2.8 Arabian Auto Agency
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Saudi Arabia Used Car Industry Segmentation
A used car, a pre-owned vehicle, or a second-hand car is a vehicle that has previously had one or more retail owners. Used cars are sold through various outlets, including franchise and independent car dealers, rental car companies, buy here pay here dealerships, leasing offices, auctions, and private party sales.
Saudi Arabia’s used car market is segmented by vehicle type, sales channel, and vendor type. By vehicle type, the market is segmented into hatchbacks, sedans, and sports utility vehicles (SUVs) and multi-purpose vehicles (MPVs)). By sales channel, the market is segmented into online and offline. By vendor type, the market is segmented into organized and unorganized.
The report offers market size and forecasts in value (USD) and volume (units) for all the above segments.
| Vehicle Type | |
| Hatchbacks | |
| Sedans | |
| SUVs and MUVs |
| Sales Channel | |
| Online | |
| Offline |
| Vendor Type | |
| Organized | |
| Unorganized |
Saudi Arabia Used Car Market Research FAQs
How big is the Saudi Arabia Used Car Market?
The Saudi Arabia Used Car Market size is expected to reach USD 6.41 billion in 2024 and grow at a CAGR of greater than 7.10% to reach USD 9.03 billion by 2029.
What is the current Saudi Arabia Used Car Market size?
In 2024, the Saudi Arabia Used Car Market size is expected to reach USD 6.41 billion.
Who are the key players in Saudi Arabia Used Car Market?
Yalla Motor, CarSwitch, Halta2ee, SaudiSale and Abdul Latif Jameel Motors are the major companies operating in the Saudi Arabia Used Car Market.
What years does this Saudi Arabia Used Car Market cover, and what was the market size in 2023?
In 2023, the Saudi Arabia Used Car Market size was estimated at USD 5.95 billion. The report covers the Saudi Arabia Used Car Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Saudi Arabia Used Car Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What is the role of online platforms in the Saudi Used Car Market?
The role of online platforms in the Saudi Used Car Market are a) Growing importance of online listings b) Digital marketing strategies
Saudi Arabia Used Car Industry Report
The Saudi Arabia used car market is experiencing significant growth, driven by affordability, a wide range of available models, and the avoidance of rapid depreciation associated with new cars. This market caters to a diverse customer base, including both citizens and expatriates, and offers a variety of vehicle types such as hatchbacks, sedans, MUVs, and SUVs. Sales channels are divided into online and offline platforms, and the market is segmented by vendor types, including organized and unorganized sectors. Regional insights reveal distribution across Northern and Central, Western, Eastern, and Southern regions of Saudi Arabia.
The market's evolution emphasizes quality, affordability, and a broad array of choices to meet the diverse needs of consumers. According to industry analysis, the market outlook remains positive, supported by comprehensive market research and industry reports. The market forecast indicates continuous growth, driven by market leaders who leverage industry trends and market data to stay ahead.
The market review highlights the importance of market segmentation and market value, with a particular focus on market growth and market predictions. The report example and report PDF provide detailed insights into market dynamics, supported by industry statistics and industry information. Research companies play a crucial role in providing accurate market data and market overview, ensuring that the industry size and industry sales are well-documented.
Overall, the Saudi Arabia used car market is poised for sustained growth, backed by robust industry research and market analysis. The market's success is attributed to its ability to adapt to changing consumer preferences and the continuous efforts of market leaders to innovate and expand their offerings.
