Saudi Arabia has one of the highest number of per capita vehicles, globally. In 2015, about 0.73 million units of commercial vehicles and passenger cars were sold in the Kingdom. Saudi Arabia hugely lacks in terms of vehicle production as only a handful automobile assembly units are located across the country.
As a result, the entire domestic demand for automobiles as well as tyres is met solely through imports. However, expanding growth potential in the automobile sector is attracting several vehicle manufacturers to Saudi Arabia.
Japanese car maker Isuzu has constructed a production facility in Dammam Industrial City 2 and plans to manufacture about 25,000 light trucks and heavy duty trucks by 2017, primarily to address swelling domestic as well as exports demand from the MENA region. This is expected to considerably boost OEM tyre sales in the country over the next five years. According to a recent report, the tyre market in Saudi Arabia is forecast to grow at a CAGR of around 17% till 2019. Increasing passenger car sales, expanding automobile fleet size, favorable government policies and significant foreign investments in the automotive sector are some of the key factors propelling tyre demand in Saudi Arabia.
Due to extreme weather conditions, replacement period for tyres is relatively shorter, which is also a major reason for increasing replacement tyre sales in the Kingdom. Passenger car tyre is the most dominating segment in the Saudi Arabia tyre market, followed by commercial vehicle tyre and other vehicle tyre segments.
The Kingdom’s Western and Central regions, comprising Riyadh, Mecca and Madinah, collectively account for around 57% of the total tyre sales in Saudi Arabia. Besides major Chinese brands, some leading tyre manufacturers like Bridgestone, Michelin, Continental, Goodyear and Yokohama have established themselves as key players in the Saudi Arabia tyre market.
Automechanika Jeddah Automechanika Jeddah is poised to emerge as Saudi Arabia’s leading regional trade fair for the automotive industry targeting trade visitors from Saudi Arabia. As the newest edition of the 15 global fairs, Automechanika is set to enter the ever growing Saudi Arabian automotive aftermarket industry by launching Automechanika Jeddah from 26 – 28 January, 2016. The trade exhibiton is set to create the ideal platform for local trade visitors and exhibitors with direct access to the new frontier of the Middle East’s automotive aftermarket, where thousands of key decision makers will network, discover and source the latest products and innovations.
With the steady growth of the automotive manufacturing and aftermarket industry in the region, Automechanika Jeddah will present 150+ exhibitors from over 25 countries at the Jeddah Center for Forums & Events
If you are looking to meet new business contacts or expand your business in Saudi Arabia then visiting Automechanika Jeddah 2016 will provide you just the right opportunity.
