2012-11-12 12:35:37 - New Transportation market report from Business Monitor International: "Saudi Arabia Autos Report Q4 2012"
There have been more signs over the last quarter that Saudi Arabia might be developing a viable smallscale production hub. In August 2012, chairman of Indian automaker Tata Motors, Ratan Tata, suggested that Tata's Jaguar Land Rover (JLR) subsidiary might establish a vehicle assembly plant in Saudi Arabia.
What sparked Tata's interest in the country was the news that Saudi Arabian mining firm Ma'aden, in a joint venture with Alcoa, plans to open a US$10.8bn aluminium plant in the country, which would provide competitively priced aluminium for use in vehicle production. A smelter and rolling mill is expected to start operations at Ras Al Khair in 2013, while an alumina refinery is expected to start operations by 2014.
This news follows previously
announced projects, such as Isuzu Motor's plan to start production of trucks in the country by end-2012, and Al-Amoudi Group's plans to build the country's first tyre manufacturing facility by 2015. The US$500mn Ghazal SUV project is also still being developed by its Saudi and Korean backers. Saudi Arabia already tops BMI's Risk/Reward Ratings for the autos sector in the Middle East and North Africa, but we believe that the development of a larger autos production hub within the country should allow it to score even higher in the years ahead.
Full Report Details at
- www.fastmr.com/prod/499858_saudi_arabia_autos_report_q4_2012.asp ..
Looking at recent sales data, a total of 408,221 new cars have been sold in Saudi Arabia over the first seven months of 2012, an increase of 16% y-o-y. On present trends, this would indicate full-year sales in the order of around 700,000 units, very much in line with BMI's forecast. Beyond the current year, we remain optimistic on the evolution of overall new vehicle sales (passenger cars plus commercial vehicles), which we see breaking through the 1mn unit per annum mark in 2015. High levels of government spending, higher wages and easier access to financing are all providing impetus to the new car sales market at the present time. Consumer loans for cars and equipment increased by 13% in Q112, to SAR51.7bn, according to the Saudi Arabian Monetary Agency's statistical bulletin.
The best-seller on the Saudi market as of end-July 2012 remains the Toyota Hilux, on year-to-date sales of 38,783 units (9.5% market share). In second place is the Toyota Corolla, on 27,831 (6.8) and then Hyundai's Accent on 25,406 (6.2%).
Toyota Motor and Hyundai Motor remain the biggest sellers on the Saudi market, with Toyota holding a dominant market share of some 40%. Hyundai is quite some way behind in second place, on an overall market share of some 18.5%. Behind Toyota and Hyundai lie Kia Motors (6.4%), Chevrolet (6.2%) and Ford Motor (5.9%).
Report Table of Contents:
- Saudi Arabia Autos SWOT
- Saudi Arabia Political SWOT
- Saudi Arabia Economic SWOT
- Saudi Arabia Business Environment SWOT
- Table: Passenger Car Sales H112
- SUVs In Demand At Both Ends Of The Spectrum
Industry Risk/Reward Ratings
- GCC States Still Dominant
- Table: Middle East And North Africa Autos Risk/Reward Ratings
Industry Forecast Scenario
- Table: Saudi Arabia - Autos Sales Forecast, 2010-2016
- Table: Saudi Arabia - Car Ownership, 2010-2016
- Macroeconomic Forecast Scenario
- Table: Saudi Arabia - Economic Activity, 2011-2016
- Passenger Cars
- Table: Saudi Arabia - Top 10 Best-Selling Models 2011
- Commercial Vehicles
- Automotive Finance
- After-Sales Business
- Alternative Fuels
- Record BMW Sales Reflect BMI Views
- Abdul Latif Jameel Group
- Aljomaih Automotive Company
- Table: Saudi Arabia's Population By Age Group, 1990-2020 ('000)
- Table: Saudi Arabia's Population By Age Group, 1990-2020 (% of total)
- Table: Saudi Arabia's Key Population Ratios, 1990-2020
- Table: Saudi Arabia's Rural And Urban Population, 1990-2020
- How We Generate Our Industry Forecasts
- Automobile Industry
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