Saudi Arabia Women Boost the Automotive Industry

Saudi Arabia’s 2.5 million female drivers (728k Riyadh, 801k Mecca, 427k Eastern province, 204k Madina) are expected to increase car sales by 9% per annum through 2025.

Saudi female drivers prefer new, affordable, and compact utility vehicles. They would rather pay a little more money on a new vehicle to avoid roadside car breakdowns or having to spend time at male-dominated car maintenance workshops.  Market growth in new car sales is expected to be largely captured by existing and well-established new car dealers

Notably, while vehicle sales in 2020 decreased approximately 469,593 units or a reduction of 13.4% compared to 2019 - new car sales for Chinese-owned brands, such as Changan and MG, reported an increase in sales of 85% and 101% respectively during the same time period. The competitively priced Chinese brands have risen in the Kingdom’s market and are showing signs of further growth.   

As the Kingdom continues with its reform measures while dealing with the pandemic, a variety of business opportunities in Saudi Arabia’s automotive sector are expected to flourish.  From car sales to vehicle insurance to financial vehicle leasing. Incremental capital investments will be required to build new road infrastructure. New women-only driving schools will be established. Recalculation of insurance premiums will increase insurance revenues as risk profiles will change with the introduction of women to the driving population.

For more information please contact Saad Ahmed- Commercial Specialist saad.ahmed@trade.gov.