Auto Accessories Market Outlook in Saudi Arabia (KSA), Forecast to 2022

Auto Accessories Market Outlook in Saudi Arabia (KSA), Forecast to 2022

This industry docket provides an overview of the KSA automotive accessories aftermarket. Combining extensive efforts to analyse this very fragmented market (there are over 60 various accessories available in the market), it provides an insight into both dealer channel (which offers both OEM sourced and third-party sourced accessories) as well as independent channel. This docket is an essential guide not just for existing market participants but also for those desirous of entering the market.Customer research is not part of the study; only top level findings are presented

  • Scope & Limitations
  • KSA Light Vehicle Market Outlook
    • Key Drivers To Support Medium and Long Term Growth
      • Population to grow 10% by 2021; personal vehicles to remain key transportation mode with limited public transport networks
    • Vehicles In Operation: Beyond 10 Million by 2022
      • Toyota expected to maintain a stable 40% market share through 2022 (light vehicles), Korean brands to advance
    • Automotive Market: Snapshot of VIO & After Market^
      • VIO 8.1 million in 2016 and overall parts market (including tyres, batteries, lubricants) SAR 25.1 billion
  • Accessories Aftermarket: GCC Perspective
    • GCC highlights 2017: Customer perspective
      • Vehicle personalisation accounts for >50% of accessory purchase decisions in the GCC
    • GCC highlights 2017: Dealer channel
      • Around one quarter of accessories sold through OEM dealers: average gross profit margins exceed 30%
    • GCC highlights 2017: Independent aftermarket channel
      • Wheels, seat covers and floor mats are the top 3 purchased accessories in KSA: low value but high volume (except wheels: high value and high volume)
    • GCC highlights in 2017
      • Sales of accessories will become more integrated in the vehicles sales process as market matures: crucial to implement best practices
  • KSA Accessories Market
    • Accessories in focus (PC incl. SUV + pickups)
      • Most accessories can be categorised across five major groups: Exterior, Interior, Electronics, Car care, Performance and Tuning
    • Regulatory background
      • Limited regulations regarding car accessories allow for multiple products entering the market
    • Aftermarket Forecast (At Retail Level)
      • Despite slowdown in 2016, average spend on accessories to grow from SAR 170 to SAR 180 at retail prices
      • Customers to spend up to SAR 230 on accessories by 2022
  • Dealer Channel Analysis
    • Dealer Channel: Focus on Accessory Sales Process
      • Toyota has the most equipped dealer network to efficiently sell accessories
    • Dealer Channel: Accessory Sales Volumes
      • Recovering light vehicle sales, higher demand for personalisation to drive the market until 2022
      • Up to SAR 631 to be spent on new vehicles at time of purchase from dealership by 2022
    • Dealer Channel: Market Share by Brand
      • Toyota to continue leading the market with high vehicle sales and a wellestablished process of accessory sales
    • Route to Market Analysis - Accessories
      • For new car dealers, mark-up on accessories reaches 50-55% becoming an efficient way to support dealership bottom line
  • Independent Aftermarket Channel Analysis
    • IAM Channel: Accessory Sales Volumes
      • Up to SAR 1.7 billion worth of accessories to be sold in the independent aftermarket by 2022; dealers need to re-adjust strategies to get into that segment
      • On average, KSA customers to spend up to SAR 172 on accessories annually by 2022, driven by higher demand for personalised vehicles
    • IAM Channel: Profitability analysis
      • 50% mark-up available from wholesaler to end user; online retailing through global stores popular in the UAE
  • The Industry Going Forward
    • Recommendations: Dealerships
      • Sales of accessories to be fully integrated into the new vehicle sales process, either through dedicated sales person or new vehicle salesperson
      • Sales people recommended to have accessory sales targets as part of overall monthly sales targets
      • Availability of accessories to be synchronised with new product launches to attract customers
      • Locally sourced accessories can support dealership bottom line and increase competing chances against the independent channel
    • Recommendations: Independent Channel
      • Once the vehicle is out of the showroom, owners rarely go back to purchase accessories: online presence can help educate them on offer and price
  • Appendix
    • Glossary
  • Annexure: Our Services
    • Maximize opportunities from existing products and markets; systematically explore new products, markets, including inorganic Opportunities
    • Our Growth Consulting Canvas

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