RIYADH — Saudi Arabia remains one of the most dominant automotive markets in the Middle East as manifested in the recently concluded Riyadh Motor Show 2012, the 29th International Exhibition for Motor Vehicles, which attracted over 84,200 trade visitors during its six-day run at the Riyadh Exhibition Center. In addition to its record-setting visitor footfall, which included high-profile business visitors, automobile enthusiasts (mainly youth) and families, Riyadh Motor Show also reported millions of Saudi riyals in car reservations that were signed with dealers and financing companies during the event. A recently published forecast that new-car sales in Saudi Arabia are projected to cross one million units in 2018 in view of rapid trade and economic expansion in the Kingdom, coupled with fast-growing population validated the highly successful outcome of the recently concluded Riyadh Motor Show 2012. Kamil Al Jawhari, Project Manager of Riyadh Motor Show at Riyadh Exhibitions Company, said: “We received tremendous response from key market segments that are expected to drive the long-term growth of the Saudi automotive market, including the youth category which has been one of the industry's primary target audiences. Overall, the enthusiastic participation of domestic and international trade exhibitors and visitors strongly underlines the enormous growth potential of Saudi Arabia and its dominance as the most lucrative automotive market in the Arab region. Over the years, Saudi Arabia has consistently maintained its status as the largest market in the Middle East and the fifth largest in the world for auto parts, accessories, service, and garage equipment. We will therefore continue to position Riyadh Motor Show as a premier networking platform that will enhance KSA's reputation as an ideal destination for investors, distributors and dealers of vehicles and auto parts.” Riyadh Motor Show 2012 showcased the latest models of passenger cars, station wagons, Sports Utility Vehicles (SUV), pick-up trucks, motorcycles, Special Purpose Vehicles, and 4x4 vehicles. It also featured a wide selection of automobile financing and insurance services. Saudi Autoshop featured the Kingdom's largest gathering of leading auto parts suppliers and auto service providers from all over the world. Riyadh Motorshow and Saudi Autoshop covered nearly 20,000 sqm gross floor space at Riyadh Exhibition Center. Buyers have counted on this event to showcase the latest models and options from top names in the auto industry from around the world. According to National Commercial Bank report on the Saudi automotive sector released in the middle of this year, the Kingdom's car sector is expected to resume expansion in the medium term. Its growth will be driven by a growing population and rising income per capita, forecasted to reach 31 million people and SR87,000, respectively, by 2015. Thus, total vehicle sales are projected to increase at a 4-year CAGR of 6.7 percent over the forecast period to reach 884,000, amounting to a market value of SR77.2 billion. Strong demand is also expected across all three automotive segments. Growth of small passenger cars is anticipated to be more robust moving forward as the youth population cohort continues to expand and rising inflation levels result in a more price sensitive consumers. However, brand consciousness in the Kingdom kept the premium segment afloat, and will most likely ensure the strong performance of the SUVs in coming years. Meanwhile, commercial vehicle sales are expected to continue booming due to the increased demand for trucks and buses from the expanding non-oil sector. The Kingdom's automotive imports are forecast to grow at a CAGR of 9.6 percent over the next 4 years, reaching over one million vehicles by 2015. Organized under the patronage of Jabarah Al-Suraisiry, the Saudi Minister of Transport, Riyadh Motor Show 2012 was held concurrently with Saudi Autoshop 2012, the 15th International Exhibition for Auto Repair, Equipment, Tools, Parts and Accessories. More than 40 automobile brands, four banking institutions and over 30 specialized companies from all over the world showcased their latest products and value-added services during the event, which was inaugurated by Dr. Abdulaziz bin Abdulrahman Al-Ohaly, Deputy Minister for Transport Affairs. — SG
