26 jan 21
Fil d'Actus

Saudi auto sector switches to e-commerce

Decreased footfall due to the pandemic is pushing the Saudi auto industry towards new business models, with trade increasingly taking place online. The phenomenon affects not only car sales via dealerships, but also vehicle maintenance, reports say. 

As elsewhere, shared mobility has suffered in Saudi Arabia, due to hygienic concerns associated with the coronavirus.  
A recent report by KEN Research, titled ‘KSA Automotive Industry Outlook to 2025’, points out the various opportunities for disrupting the generally very traditional and conservative automotive industry in Saudi Arabia. These include:

  • Rental and leasing are very popular in Saudi Arabia, due to the large ex-pat community and significant pilgrim travel. A further growth incentive – the recent law allowing women to drive. 
  • Rental players are increasingly expanding their activities into leasing and remarketing, in order to counter the negative effects of the pandemic.

Image: Shutterstock

Authored by: Frank Jacobs