Increasing Prices of New Cars with the Tripling of VAT rate and Shifting Preferences towards Online Platforms driving Used Car Sales in Saudi Arabia: Ken Research
Buy Now Growth of Online Platforms: The last decade has witnessed the entry of various online auto classified platforms in the country such as Motory, Abi Sayara, Syarah, and more. The internet penetration in the Kingdom stood at ~93% in January 2020, highlighting the growing presence of consumers online. The majority of the leads for offline dealerships were also observed to be generated online. The traction towards online platforms has led to brands & local dealerships partnering with these platforms to list their used car inventory online. Central & Western Region Dominating Sales: The central & western regions, particularly the cities of Riyadh & Jeddah were observed to account for the majority of the used car sales in the country. These regions also account for a large proportion of the working and ex-pat population in the country and act as a business hub. Most large brand-authorized dealers have multiple showrooms in these regions. Challenges in...