JEDDAH – New-car sales in Saudi Arabia are projected to cross one million units in 2018 in view of rapid trade and economic expansion in the Kingdom, according to a study. Major projects underway in various regions and several other special factors underpin stable and continued growth in Saudi Arabia, distinguishing it from the neighboring countries, the study said. Conducted by Specialized Systems for Exhibitions and Conference (EXCS), the study forecast continued rapid growth of the Middle East car market, particularly in the luxury car sector where sales are expected to rise by 15 percent in 2012 compared to 9 percent in 2011. Moreover, BMI forecast in another report, that the demand for smaller, lower-priced family cars with more economical running costs will rise as wealth increases at the lower end of the economic spectrum. The Saudi car market has traditionally been dominated by high-end models. The population of Saudi Arabia is expected to grow 39 percent to a total of 36.5 million people by 2030 and as a result BMI expects to see a longer-term rise in demand for smaller cars. The ultra-luxury car market in Saudi Arabia grew 39 percent in 2010 and a 90 percent increase in Q111 sales for Rolls-Royce, in comparison with the same period in 2010, leads BMI to believe that the high-end auto sector will continue to show impressive growth this year. Rolls-Royce, Lexus and Porsche have all recently invested heavily in opening new state-of-the-art sales and servicing centers in anticipation of an increase in demand. Moreover, BMI anticipated above-average growth in the market for commercial vehicles, are currently responsible for about 20 percent of auto demand in Saudi Arabia. The findings suggest strong participation by luxury car dealers in the 6th edition of Luxury Motor Show to be held at the Hilton Hotel in Jeddah, Nov. 6-8, 2012. “This year's show will embrace the world's latest, most luxurious and expensive cars, some displayed for the first time in Saudi Arabia,” said Abdullah Alshemasi, Director General of EXCS, the show organizer. The previous five editions of the Luxury Motor Show were hugely successful and higher sales are expected this time around in view of rising demand from expectations of market recovery, he said. We expect high-class participation again this year since the show is dedicated to an elite and carefully selected audience seeking the latest and most distinctive products from the automotive world,” he said.
“For the convenience of the dealers and their discerning clientele, the show will be held in the main hall of the Jeddah Hilton hotel where adequate space will be devoted to displaying the splendor and exclusivity of each luxury car brand,” he added. Saudia Private Aviation (SPA) is sponsoring the Luxury Motor Show. Confirmed participants include Rolls-Royce, Bentley, Mercedes-Benz, Cadillac, Lexus, Lamborghini, McLaren, BMW, Land Rover, Jaguar, Audi, Aston Martin, Porsche, Centennial, Viewmotion and Moda Car. – SG
