Saudi Arabia Autos Report Q3 2014 - New Market Report

Fast Market Research recommends "Saudi Arabia Autos Report Q3 2014" from Business Monitor International, now available

[USPRwire, Tue Jul 29 2014] BMI remains positive on the medium-term outlook for Saudi new vehicle sales at the mid-point of 2014. We are currently targeting around 19% sales growth over the 2014-18 period. This should see total new vehicle sales break through the 900,000 unit barrier during 2017 and approach 1mn by end-2018.

Over Q114, auto sales totalled some 197,027 units, representing annual growth of 1.7%, according to information on the Focus2Move website. Encouragingly for the rest of the year, March sales were actually up by a larger amount, 3.9% on the previous year, at 69,970 units.

Looking forward, BMI retains its forecast of 5.4% growth in new car sales this quarter. The country's macroeconomic backdrop remains broadly favourable, with BMI's Country Risk team forecasting real GDP growth of 4.3% in 2014 and having now revised up its growth forecast for 2015 up to 3.6% (from 3.3%), on the back of an increasingly positive outlook for construction activity. Indeed, we see Saudi Arabia's economic performance remaining strong heading into 2015, owing to elevated domestic demand and accelerating progress on the country's substantial pipeline of infrastructure projects.

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Turning to private consumption - a key indicator of likely demand for new vehicles - BMI retains a bullish view this quarter, forecasting growth of 5% for both 2014 and 2015. Strong levels of private consumption should also lend support to demand for new cars. Auto financing should also remain fairly affordable, with monetary policy conditions set to remain supportive. Saudi consumer price inflation (CPI) averaged 2.8% year-on-year (y-o-y) in Q114, down from 3.9% in Q113. BMI has now revised down its expectations for 2014 average CPI to 3.4%, from 4% previously. As such, we expect no change to the Saudi Arabian Monetary Agency's key policy rates over the coming quarters, with the repo and reverse repo set to stay at their current levels of 2.0% and 0.25% respectively. This will help any Saudi residents who require...

The Saudi Arabia Autos Report features the latest data and forecasts covering production, sales, imports and exports.

Business Monitor International (BMI)'s Saudi Arabia Autos Report provides industry professionals and strategists, corporate analysts, auto associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on the automotives market in Saudi Arabia.

Key Benefits

* Benchmark BMI's independent automotives industry forecasts on Saudi Arabia to test other views - a key input for successful budgetary and planning in the Saudi automotives market.
* Target business opportunities and risks in the Saudi automotives sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Saudi Arabia.

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