Medium Cars - Saudi Arabia

Saudi Arabia

Revenue in the Medium Cars market is projected to reach €1,019m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 1.17%, resulting in a projected market volume of €1,080m by 2029.
Medium Cars market unit sales are expected to reach 57.5k vehicles in 2029.
The volume weighted average price of Medium Cars market in 2024 is expected to amount to €18k.
From an international perspective it is shown that the most revenue will be generated in China (€82,830m in 2024).

Key regions: India, United States, Germany, China, Europe

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Analyst Opinion

The Medium Cars market in Saudi Arabia has been experiencing significant growth in recent years.

Customer preferences: Customers in Saudi Arabia have shown a strong preference for medium-sized cars due to their versatility and practicality. Medium cars offer a balance between fuel efficiency and spaciousness, making them suitable for both city driving and long-distance travel. Additionally, medium cars often come equipped with advanced safety features and technology, which is highly valued by Saudi Arabian consumers.

Trends in the market: One of the key trends in the medium cars market in Saudi Arabia is the increasing demand for hybrid and electric vehicles. As the country looks to reduce its dependence on fossil fuels and promote sustainable transportation, there has been a growing interest in eco-friendly vehicles. This trend is further supported by government initiatives and incentives that encourage the adoption of hybrid and electric cars. Another trend in the market is the rising popularity of SUV-style medium cars. Saudi Arabian consumers have shown a preference for larger vehicles, and the SUV segment has seen significant growth in recent years. Medium-sized SUVs offer the perfect combination of size, comfort, and practicality, making them a popular choice among consumers in Saudi Arabia.

Local special circumstances: One of the unique factors influencing the medium cars market in Saudi Arabia is the country's climate. With extremely high temperatures and harsh desert conditions, customers in Saudi Arabia prioritize cars that are reliable and can withstand the challenging environment. As a result, medium cars that are known for their durability and performance in extreme conditions are particularly sought after in the market.

Underlying macroeconomic factors: The growth of the medium cars market in Saudi Arabia is also driven by favorable macroeconomic factors. The country has a strong economy and high disposable income levels, which have contributed to increased consumer spending on automobiles. Additionally, the government's efforts to diversify the economy and reduce dependence on oil have led to the development of various industries, including the automotive sector. In conclusion, the Medium Cars market in Saudi Arabia is experiencing growth due to customer preferences for versatile and practical vehicles, the increasing demand for hybrid and electric cars, and the popularity of SUV-style medium cars. The local special circumstances, such as the country's climate, also play a role in shaping customer preferences. Furthermore, favorable macroeconomic factors, including a strong economy and high disposable income levels, contribute to the growth of the market.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of new passenger cars. Data on the specifications of the sold vehicles is based on the base models of the respective makes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use company reports and websites, vehicle registries, car dealers, and environment agencies among other sources. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and car stock per capita. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, we use the ARIMA model for the Passenger Cars market. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).