Business Plan Revalidation for an Automotive Ecommerce Aftermarket Services Venture in Saudi Arabiaadmin2024-02-19T11:24:23-04:00
Business Plan Revalidation for an Automotive Ecommerce Aftermarket Services Venture in Saudi Arabia
KSA is slowly witnessing commercial benefits. Also, leisure and religious tourism drives the car industry especially used cars or rented or leased. Government of KSA emphasizes on automotive sector as key revenue generator and is promoting the FDI inflow. Global OEMs are also planning to set up production bases in KSA.
KSA now almost owns the California EV start up. In exchange for US$ 1.3 billion investment Lucid Motors gave up majority ownership to Saudi Arabia’s sovereign wealth fund. Increase in the gasoline and diesel price as apart of Saudi Arabia’s Fiscal Balance Program 2023 (FBP) may intensify the customers focus on hybrid and electric vehicles.
KSA vision 2030 under the National transformation program aims to contribute close to 80% of trade in retail sector through modern trade and E-commerce. KSA also plans to invest in US$ 100 billion in Logistic infrastructure
New car market in KSA is estimated to grow at a CAGR of 7.5% over the next 10 years. Unlike other countries where the dependence on public transport is high, the KSA market where dependence on personal cars is high for commuting.
Government Support – KSA Government has aligned a vision during the period of 2020 to 2030 to bring in OEMs to produce approximately 300,000 vehicles in KSA. It also aims to develop ~40% Local Gross Value Add in the automotive ecosystem