Saudi automotive Arena transformation to E-commerce

The integration is extensively done all through the global as well as native technology partners.

Saudi Arabia’s COVID effect on the Automotive industry has seen a huge deterioration in foot fall across varied showrooms of brands, which utilized for core modes of sales, pre-COVID-19.

Ken Research stated in a report that: “We see a shift towards E-Commerce in the KSA automotive industry with higher online penetration levels across various segments, but not a major move from physical to online sales.”

The technology tendencies and expansions also witness a foremost shift towards radical ERP and CRM systems being utilised in the market, majorly by organised segment. Entities functioning in the automotive industry of KSA are able to comprehend the procedure and optimisation competences of rationalized and competent operating systems and endure to utilize diverse software’s and solutions in addition with customised modules to boost their operations and client relationship management efforts.

The integration is majorly done via global and native technology partners who compete on integration, cost efficiency duration of the project and more factors, and provide either single software utilisation or in some cases, a mix of various vertical and standalone ERP solutions.

Various new vehicle maintenance models are also viewed with varying ownership periods amidst job loss and finishing of many offices. Share mobility market also witnessed a deterioration as public move towards hygienic ways affecting diverse market segments. Corrective procedures taken by various entities and government itself to sustain commercial and are providing incentive to move towards state-of-the-art business models in various industry segments.

The report titled ‘KSA Automotive Industry Outlook to 2025 – Emphasis on Technology Adoption and Trends for Traders, Suppliers, Spare Parts Suppliers, Fleet and Leasing Establishments and Car service providers’ observed that the there is a enormous prospect to interrupt the old-style and conservatively operating automotive Industry in KSA.

The report confers the existing technology adoption amongst the various segments of players like Importers, Distributors, Spare Part Dealers, Dealerships, Workshops, car Spas, Rental and Leasing Players amongst more.

The report further scrutinizes each segment in detail, providing a brief overview along with market size, segmentation, competition scrutiny, trends, expansions and future scrutiny of various segments, focusing keenly on entity relationships and business models.

These segments are then further analysed to gain a better consideration of the ERP and CRM modules essential to pave the way for digitisation amidst the industry, across KSA.


KSA Automotive is presently dominated by homegrown retail and distributing partners, simplifying progress of global OEMs and other brands amidst a deficit of native manufacturers with respectable quality products. The demand for automotive vehicles and spare parts is significantly fulfilled via imports from nations like USA, Japan, China, Korea, India and other Gulf countries. The ecosystem is made up of big trading firms who connect their retail and distribution networks across KSA to strive in the market for Tier 1 and 2 cities, while mainstream of rural areas and tier 3 cities still rely on unorganised market for local demand.

KSA connects a lot with adjacent gulf countries in terms of imports and re-exports and is looking advancing to progress domestic manufacturing and exporting capabilities for South Africa and other African and gulf nations with stronger tax and driving policies, development of industrial hubs, efficient bilateral relationships and allies, technological competence and its enhancement.

Automotive Import/Distributors and Dealerships

 The import of vehicles in KSA consists significantly of sedans and SUVs amidst sport and luxury cars, enabled via global OEMs in association with native partners. The space is vastly dominated by big trading establishments with strategic partnerships with OEMs, who act as sole distributors and traders of particular brands. Some of the major players include, Abdul Latif Jameel (Toyota), Mohammad Yusuf Naghi (Hyundai and BMW), Haji Hussien (Mazda) and few more.

But the rivalry is witnessing a shift with Hyundai and Nissan taking on Toyota in various segments of market like passenger vehicles and sedans to grab a bigger market share. Recent market trends regarding vehicle procurement and ownership are also shifting affecting market segmentation of vehicles as more women enter the market with EVs and hatchbacks taking a more fundamental part of market in evaluation to Sedans and SUVs.

However, the focus in the forthcoming time frame is set to shift towards utilising domestic abilities, with KSA government pushing FDI inclusion amidst series of relaxations and support schemes.

Automotive Aftermarket Industry

Aftermarket industry is fragmented between organised and unorganised sector with organised sector principal in terms of revenue generation capabilities and quality of services. Unorganised segment of the marketplace mostly tries to cater in tier 3 and other rural areas as they can target a lower income group who are not fixated on the quality of service.

Significantly the parts utilized are also revamped and not completely genuine (First copies). Organized players on the other hand provide an arrangement of exiting and improved quality services. Players in organised sector comprises of Multi-brand aftermarket workshops and spare parts retailers or genuine agency repairs (dealership led).

They either provide complete auto care services or focusses in quick lube, crash repair and intermittent maintenance services. Another segment of the market known as the mobile service centres offers on road aid catering car spa and maintenance services across KSA.

Rental and Leasing Industry

Rental and leasing industry in KSA is the most operated industry with marked segment of Expats and visitor/business tourism showing hopeful progress across the year. Certain new developments like women driving laws, employability prominence on Saudi nationals and other investment schemes linked to digitization is further serving the market to nurture across KSA.

Existing industry performs have viewed a unilateral transfer of rental players into leasing prospects and utilized car retails to endure their businesses amidst the global pandemic. We also are spectator to better new market segmentation on the basis of final users, vehicle type and regions, along with an emphasis on various strategic partnerships amongst ride hailing establishments and charter/rental players to progress innovative business model as the market’s attention swings from ownership to user ship.


Please enter your comment!
Please enter your name here