Saudi Arabia’s automotive market is seeing a clear decline in new-car prices. Cementing its position as the most competitive in the Gulf region. Experts say this trend is driven by dealer competition, the rise of Chinese brands, and the Kingdom’s large market, which gives consumers more options and better value.
Dealers and Chinese Brands Push Prices Down
Industry specialists point to the high number of dealers and distributors as a key factor in price reductions. Abdulrahman Al-Khaledi, CEO of Emadalden showroom, said:
“Multiple dealers for the same brand are a main driver of price reduction, as each dealer seeks to increase sales and prove productivity to parent companies.”
Chinese brands such as Haval, Great Wall, Jetour, Changan, and MG are also reshaping the market, appealing particularly to younger buyers. This influx has:
- Increased supply and competition
- Provided cheaper alternatives to used cars
- Lowered luxury car prices by up to 20%
A field survey by Al Eqtisadiah found that prices of popular models from Toyota, Hyundai, Honda, and Chinese brands dropped between 10–15% early this year. This reflects market saturation and the anticipation of new models.
Saudi Arabia: Cheapest in the Gulf
A Focal Point study of 68 models across 17 GCC brands found that Saudi Arabia was the most affordable market. Key findings include:
- Saudi Arabia price index: 91.05 (Gulf average = 100)
- UAE highest at 105.41, Qatar 104.42, Kuwait 103.25
- Lowest prices for sedans, SUVs, 4×4 vehicles, and small pickup trucks
- Popular models like the Toyota RAV4, MG5, and Changan UNI-V saw notable price reductions
Market Size and Supply Chain Efficiency
Experts highlight that Saudi Arabia’s competitive edge goes beyond pricing:
- Diverse vehicle categories and fast delivery
- Flexible pricing policies
- Large market size supports dealer competition and preferential pricing
Ahmed Al-Harbi noted that high purchasing power and major projects in the Kingdom have strengthened demand across all categories. Following the global semiconductor shortage, factories are now at full capacity, fueling competition and further reducing new car prices.
Strong Sales Reflect Market Health
Car sales reached 827,000 vehicles in 2024, up 13% from 2023. The top 10 automakers, led by Toyota (28%) and Hyundai (16%), accounted for 80% of the market. Chinese brands captured 12% of the market, with 48,000 vehicles sold.
Al-Khaledi emphasized, “When comparing the same car at dealers in Saudi Arabia versus dealers in Gulf countries, Saudi Arabia is unquestionably the cheapest.”
With falling new car prices, abundant options, and quick availability, Saudi Arabia continues to stand out as the Gulf’s most consumer-friendly automotive market.
Conclusion
With falling new car prices, wide model availability, and strong competition, Saudi Arabia offers consumers unmatched value in the Gulf. As dealer networks expand and Chinese brands continue to grow, the Kingdom is likely to maintain its edge as the region’s most affordable and dynamic automotive market.
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