Saudi Arabia Vehicles Sales Statistics in 2017 fell 23% hit by first recession since 1999, due to reduced oil output in compliance with OPEC’s agreement and reduced government support. This albeit December was pushed up by sales anticipating VAT introduction.
Reduced oil output in compliance with OPEC’s oil-cut deal, low oil prices and reduced government support led the Saudi economy to contract in 2017 for the first time since 1999. According to preliminary figures, GDP contracted 0.7% in 2017, contrasting the 1.7% rise in 2016. The oil and construction sectors represented the bulk of the deterioration. To boost economic growth and solidify the Saudi Vision 2030 plan, which seeks to diversify the economy away from oil, the government presented the 2018 budget on 19 December. It includes the newly introduced value-added tax and prioritizes capital expenditure.
Saudi Arabia vehicles market is enveloped in the deepest crisis ever. Indeed sales improved fast until the 2015, before that the country entered in recession, due to the fall of oil price in the international market and the measures taken by the government reduced further consumers spending, hitting the industry. In the 2016 the market fell 15.3%, but it was just a step in the prolonged crisis in place.
Indeed, 2017 started very slow with first half sales down 16.1% at 304.000 units, but the third quarter was even worse, losing near 30%. Just at the end of the year the market recovered with December booming up 26.2%. Indeed, the introduction on VAT from December 1st, with the increase in price by 5%, over-stimulated consumer’s to anticipate sales before year-end.
However, full year 2017 have been almost negative, with light vehicles sales at 544.721, the worse data in this decade, down 23.9% from the previous year.
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2018 Outlook is still negative. The start of the year will be penalized by VAT introduction and by the anticipated sales in December. However, the rest of the year will be again penalized by the economic crisis, with oil price expected stable. Our current forecast (-4.8%) could be optimistic.
Research, Consulting, Data & Forecast
F2M covers intensively this market with several products developed to help any investigation required. Market Researches in PDF are immediately available for download with study on the market since 2005 and with forecast up to the 2025. AutoData in EXCEL are immediately downloadable with annual sales volume, split by month, for all brands and all models distributed in the market. This year data are released year to date, but you will receive a monthly update until the year-end. See details within Saudi Arabia Corner Store