Used Car Market in Saudi Arabia Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Saudi Arabia Used Car Market is Segmented by Vehicle Type (Hatchback, Sedan, and Sports Utility Vehicle (SUV) and Multi-Purpose Vehicles (MPVs)), Sales Channel (Online and Offline), and Vendor type (Organized and Unorganized). The report offers market size and forecast for Saudi Arabia Used Car market in Value (USD billion) for all the above segments.

Saudi Arabia Used Car Market Size

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Saudi Arabia Used Car Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 7.36 %
Market Concentration Medium

Major Players

Saudi Arabia Used Car Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Saudi Arabia Used Car Market Analysis

Saudi Arabia Used Car Market was valued at USD 4.91 billion in 2021 and is expected to surpass a net valuation of USD 8.69 billion by 2027 end, registering a solid CAGR growth of 7.36% over the forecast period.

The COVID-19 pandemic had a moderate impact on the market as initial lockdowns in 2020 resulted in a slowdown in demand, however with ease in restrictions in 2021 consumers were encouraged to prefer used cars over new cars in wake of the pandemic coupled with fewer vehicle production due to supply chain disruptions and shortage of some auto components.

Over the medium-term forecast period, 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 used car purchase and lack of standardization are expected to act as major restraints to the growth of the market.

Although Saudi is the fifth largest country in the Asia and one of the key country among the Middle East. Region has always favoured the adoption of used/pre-owned car owing to rising demand for luxury car which are affordable in the used car segment. Consumer in the Saudi Arabia prefer used car over pre-owned as these cars offer them better price, easy financing and aftermarket maintenance support. Players including organized and unorganized member offering the vehicles provide consumer engagement program and offer competitive discounts to promote the sales of used cars in Saudi Arabia.

Considering these prime factors, demand for used car in Saudi Arabia is expted to remain high during the forecast period.

Saudi Arabia Used Car Market Trends

This section covers the major market trends shaping the Saudi Arabia Used Car Market according to our research experts:

Hatchback Segmented to Gain Momentum

Any car that has been prior owned and is now being resold through a private seller, classified ads, or local dealers without undergoing a thorough vehicle inspection test by experts is considered a used car. On the other hand, a certified pre-owned (CPO) car vehicle has previously been extensively inspected (pre-purchase inspection) and reconditioned properly to perfection by professionals.

Owing to the affordability of hatchbacks, the sales of this segment of the used car market were least disrupted during the global pandemic. Hatchbacks are popular for a variety of reasons, including lower taxation than sedans while providing the same performance and comfort. Furthermore, because there are so few new models that qualify for these tax breaks, the price of used hatchbacks remains unaffected. When it comes to secondhand hatchbacks, these vehicles are an appealing alternative to the LCGC and LMPV kinds often utilized by Saudi Arabia consumers.

Popular used hatchback in Saudi Arabia include Volkswagen Golf GTI, MINI Cooper, Renault Zoe, Suzuki Swift Sports, Kia Rio, Peugeot 308, and others. These cars are gaining monetum in the market owing to their affordable prices, bodystyle and offered fuel economy. Hatch back offer better fuel economy compared to sedan and SUV. These car fit perfect for nuclear and middle-class economy family who look for better budget car.

With changing consumer preferences in terms of fuel economy, cost, and overall maintenance benefits, demand has been witnessing immense growth for the adoption of the used hatchback. today a diverse range of hatchbacks are on the Saudi Arabia market.

Saudi Arabia Used Car Market - Revenue Share (%) by Vehicle Type, 2021

Online Sales Channel to Play Key role in the Market

Growing internet penetration and expanding online dealer network for a used cars have elevated the overall used car market demand in Saudi Arabia. Presently more than 85% of Saudi Arabia's population own the internet in their homes with 80.9% of people in 2019 having smartphones. The data resonates with strong potential for online sales channels to sell a used cars. In addition, this has motivated players to shift their business model from offline shops to online business models to provide an easy and hassle-free experience to their customers.

Many multi-brand and independent dealerships are expected to develop their online presence in order to participate in the online used vehicle market. Some dealerships are investing in their own websites and Instagram pages in addition to advertising used car inventory on internet marketplaces. For example, companies like YallaMotor, OLX Saudi Arabia, CarSwitch, Hatla2ee, Expatriates etc. are seen to drive the majority of used car sales which are featured online.

Moreover, keeping consumer needs are preferences, these online used car selling companies showcase a wide variety of cars including sedans, hatchbacks, SUV, and MUVs with filters so that buyers have hassle-free options when choosing the car model. In addition, online companies offer discounts, post-purchase maintenance assistance and service. In addition, after COVID-19 many people avoid having store visits to stop the spread of the virus inspection. Thus these companies offer them an online virtual tour of the car fleet to get a combined idea of all the features, models, and colours.

Considering these prime factors, demand for online sales channel is expted to gain traction during forecast period.

Saudi Arabia Used Car Market - Revenue Share (%), By Sales Channel, 2021

Saudi Arabia Used Car Industry Overview

Saudi Arabia Used Car Market is considered to be moderately fragmented, accommodating several leading players like Al Tayer Group, Al-Naboodah, Al-Futtaim group, SellAnyCar.com, Car switch, Yalla Motors, and other prominent players. While several key offline used car dealers are focused on adopting expansion strategies like collaborative agreements, mergers, acquisitions, etc. other new entrants are also encouraged to explore the market and are actively focused on fleet expansion, varied offerings, etc.

In December 2021, Car24 announced the investment of USD 400 million for its business expansion. The company is aiming to expand its business in Saudi Arabia, and in Southeast Asia over the period of next 12 months

Saudi Arabia Used Car Market Leaders

  1. Arabian Auto Agency

  2. YallaMotors

  3. AlNabooda Automobiles

  4. AlTayer Motors

  5. Alfuttaim Group

*Disclaimer: Major Players sorted in no particular order

Saudi Arabia Used Car Market Concentration
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Saudi Arabia Used Car Market News

In March 2022, United Arab Emirate-based car subscription service company announced the commencement of its operation with a USD 2 million investment in Riyadh, Saudi Arabia. The subscription is helping new and used car owners at economical subscription fee. 

Saudi Arabia Used Car Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porters Five Force Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION (Market Size in Value USD Billion)

    1. 5.1 Vehicle Type

      1. 5.1.1 Hatchback

      2. 5.1.2 Sedan

      3. 5.1.3 MUV and SUV

      4. 5.1.4

    2. 5.2 Sales Channel

      1. 5.2.1 Online

      2. 5.2.2 Offline

    3. 5.3 Vendor Type

      1. 5.3.1 Organized

      2. 5.3.2 Unorganized

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 Al-Futtaim Group

      2. 6.2.2 Dubizzle Motors LLC

      3. 6.2.3 Abdul Latif Jameel Motors

      4. 6.2.4 Yalla Motors

      5. 6.2.5 Al Nabooda Automobiles LLC

      6. 6.2.6 CARS 24

      7. 6.2.7 OLX

      8. 6.2.8 AlTayer Motors

      9. 6.2.9 Arabian Auto Agency

    3. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Saudi Arabia Used Car Industry Segmentation

A Used Car, a pre-owned vehicle, or a secondhand 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 Used Car Market is segmented by vehicle type, sales channel and vendor type. On the basis of vehicle type, the market is segmented into hatchback, sedan, and sports utility vehicle (SUV) and multi-purpose vehicles (MPVs)). On the basis of sales channel, the market is segmented into online and offline, and on the basis of vendor type, the market is segmented into organized and unorganized. For each segment, market sizing and forecast have been done on basis of a value (USD billion).

Vehicle Type
Hatchback
Sedan
MUV and SUV
Sales Channel
Online
Offline
Vendor Type
Organized
Unorganized
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Saudi Arabia Used Car Market Research FAQs

The Saudi Arabia Used Car Market is projected to register a CAGR of 7.36% during the forecast period (2024-2029)

Arabian Auto Agency, YallaMotors, AlNabooda Automobiles, AlTayer Motors and Alfuttaim Group are the major companies operating in the Saudi Arabia Used Car Market.

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.

Saudi Arabia Used Car Industry Report

Statistics for the 2024 Saudi Arabia Used Car market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Saudi Arabia Used Car analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Used Car Market in Saudi Arabia Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)