Automotive sales in Saudi Arabia are expected to reach over SR69.4 billion by year-end, while the number of vehicles sold during the next three-year period will post a 30 percent growth from 676,000 to 880,000, Kamil Al-Jawhari, Project Manager, Riyadh Motor Show at Riyadh Exhibitions Company (REC) said quoting a recent Business Monitor International (BIM) report. The BIM is a leading independent provider of proprietary data, analysis, ratings and rankings covering 175 countries and 22 industry sectors. Al-Jawhari said factors such as Saudi Arabia's robust economic growth, recent restrictions imposed on the age of imported used vehicles and increasing population have an impetus on the attractive automotive market in the Kingdom, according to a press release issued here. “Favorable economic conditions coupled with several other factors such as restrictions imposed on the age of used vehicles imported into Saudi Arabia and population growth have contributed to the increasing demand for vehicles, auto parts and services in 2010,” he said. Al-Jawhari said other factor in the robust market growth is the increased availability of lending facilities such as car loans that accounted for 70 percent of car sales, up from 50 percent. “Extreme weather condition has also been a factor in the steady demand for auto maintenance services,” he said. Taking advantage of the industry's robust growth forecast, Al-Jawhari said Riyadh Motor Show 2010 – the 28th International Exhibition for Motor Vehicles, and Saudi Autoshop 2010 – the 14th International Exhibition for Auto Repair Equipment, Tools, Parts and Accessories will be concurrently held at Riyadh International Convention and Exhibition Center from Dec. 5 to 9. “We are expecting to attract over 85,000 visitors from all over the world,” he said. Riyadh Motor Show 2010 will showcase the latest models of passenger cars, station wagons, Sports Utility Vehicles (SUVs), pick-up trucks, motorcycles, Special Purpose Vehicles, and 4x4 vehicles. – SG It will also include automobile financing and insurance services. The event will showcase car accessories and specialized automotive services from leading international brands, he added. Saudi Autoshop 2010, to be held concurrently, will feature the latest automobile accessories and repair service equipment; gas station equipment; automobile parts; tires, exhausts and batteries; and automobile care products. According to automotive industry sources Saudi market will generally remain impervious to the effects of the global downturn as a range of demographic factors and the country's financial stability help cushion any negative impact on the automotive sector. Factors such as strong annual population growth of up to 3 percent, high disposable income, low tariffs on imported cars and low fuel cost are boosting the automotive sector's growth prospects, even as up to 60 percent of the country's population comprised of people between 16 to 64 years of age, which is within the industry's market range.
