Automotive Parts

Saudi ArabiaType: Large, Growing Market; Medium ShareThe Saudi’s auto market has been one of the fastest growing in theworld. Despite falling oil prices, the current outlook is positive forcontinued growth in Saudi Arabia’s economy and its automotivesales.OriginalEquipmentRank30AftermarketRank13Saudi Arabia’s economy is the largest in the MiddleEast and North Africa region. The Saudi auto markethas been developing at a robust pace, thanks to thestrength of the Saudi Arabian economy, favorable autofinancing, low gas prices, high private consumptionlevels and a growing population all contribute toSaudi’s growth in vehicle sales, which bodes well for agrowing aftermarket.Saudi Arabia is the 22 nd largest destination for U.S.auto parts exports, and the market has relatively fewbarriers for U.S. companies. U.S. parts exports areassumed to be overwhelmingly for aftermarket use,since Saudi Arabia currently has very limited localvehicle and parts production.Overview of the Automotive Parts Market in SaudiArabiaSaudi Arabia is the largest auto and auto partsmarket in the Middle East, accounting for anestimated 40 percent of all vehicles sold in theregion. It is also the region’s largest importer ofautomotive products, with some of these importsbeing re-exported. Currently, there is a small amountof local auto parts and truck production, but not lightvehicle production. The majority of all types ofvehicles and parts sold in the country are imported.Approximately 1 million vehicles (passenger cars,commercial vehicles and trucks), with a value ofalmost $21 billion were imported into Saudi Arabia in2013.U.S. auto parts exports to Saudi Arabia have grownfrom $274 million in 2009 to almost $336 million in2014. In 2013 (latest figures available), the UnitedStates was Saudi Arabia’s fifth largest source of autoparts, with 9.2 percent of the import market. Japanwas the largest source, comprising 22.6 percent of theimports, followed by Germany, China and Korea.According to Ward’s, the country was estimated tohave 4 million passenger vehicles on the road and 2.1million commercial vehicles on the road in 2013.Another source estimates that more than half of thevehicles on the road in Saudi Arabia are more than 5years old, and approximately 22 percent are more thanten years old.There is a lack of official government statistics forvehicle sales in Saudi Arabia, but sales estimates rangeFigure 1: 2013 Saudi Automotive MarketSales (units) 773,000U.S. Auto Parts Exports to $335,829,598Saudi ArabiaTotal Saudi Auto Parts Imports $5,337,491,280Total Domestic VehicleUnknownProductionVehicles in Operation (2012) 3,803,000U.S. Auto Parts Export Growth +23%2009-20142015 ITA Automotive Parts Top Markets Report 31