Project Description

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

Table of Content:

Automotive Aftermarket Services Market Overview – KSA

  • Structure of the market
  • Automotive Aftermarket Services including roadside assistance market in KSA (Oil and filter change, Fuel, Tire services, Battery, Carwash)
  • Current and future trends – but not limited to Service Centers vs. Mobile Van Services; roadside assistance market; Car TCO (Cost to Own) in KSA
  • Impact of Government regulation of electronic payments to workshop (including independent workshops)
  • Foreign investment in the automotive service sector
  • Impact of urbanization and decentralization plan in main KSA cities (at least Jeddah)
  • Fast changing buying/ consumer habits about buying roadside assistance services
  • Disposable income / location / buying habits / preferences / characteristics and traits going forward

Business Concept / Model Overview – Automotive Aftermarket Services

  • Business Overview
  • Opportunity / Value Proposition
  • Services Offered
  • Revenue Streams

Market Sizing and Competition Analysis (Supply side analysis) of the Automotive Aftermarket Services and Automotive service providers/ workshop operators

  • Study 7-8 and Automotive service providers/ workshop service providers (across the value chain- organized/ unorganized sector)
  • Target Customers
  • Market Characteristics and Trends
  • Market Size- Workshop vs Online channel (Current and future) and addressable market
  • Car ownership – private / commercial; driving licences in KSA, car batteries in use
  • Identify areas of backward integration
  • Revenue Potential
  • Revenues streams, list of services offered, pricing of services, timing of operations, staffing levels, geographic reach, Unique Selling Preposition (USP), etc.
  • Strategic Partners, Marketing, Technology as may be applicable

Demand Side analysis

  • Consumer habits by nationality set: Travel habits and trends, buying trends – cash vs. payment by credit card, etc.
  • Use of motor insurance policy, it’s inclusions
  • Motivation and drivers to use outside workshops in one’s car ownership journey across year 1-10
  • Target market and customers segments assessment, buying propensity, etc.
  • Establish demand for a service provider who can provide roadside assistance to doorstep or a place of their convenience with a great a great customer experience via a marketplace model

Opportunity Assessment and Recommendations

  • Strategies for the apps marketing (download, drivers for repeat business etc.)
  • Recommend positioning and pricing
  • Suggest unique selling points and key attractions for the business
  • Assess the key success and risk factors