Saudi Arabia has had to mostly rely on exports to fill its demand for vehicles – one of the highest in the world – and has a huge vehicle production deficit. However, the situation is expected to change because of recent interest by outside carmakers. This will not only spell good news for Saudi Arabia’s car market but for its tyre market as well.
The “Saudi Arabia Tyre Market Forecast & Opportunities, 2019” by India’s Bharat Book forecasts the Saudi Arabian market to grow at a compound annual growth rate (CAGR) of around 17% between now and 2019. This is 5% higher than the prediction of 12 5% forecasted by Bharat Book’s last report last year.
Several factors, such as increasing passenger car sales, positive government policies and significant foreign investments in the automotive sector, are driving tyre demand.
The report also states that the Kingdom’s Western and Central regions (which comprises Riyadh, Mecca and Madinah) collectively account for around 57% of the total tyre sales in Saudi Arabia.