Forecast: Passenger Cars in Use in Saudi Arabia

From 2013 to 2019, the passenger cars in use in Saudi Arabia increased steadily from 3.87 million to 4.9 million units, showing a consistent year-on-year growth, peaking at 7.06% in 2015. However, the year 2020 saw a significant drop of 14.75% compared to 2019, reducing the number to 4.17 million units. This decline was followed by a strong recovery, with 2021 witnessing a 17.42% increase that brought the figures back up to 4.9 million units. The upward trend continued through 2022 and 2023, with reported values of 5.29 million and 5.41 million units respectively, showing moderate growth rates of 7.87% and 2.36%. The cumulative average growth rate (CAGR) over the last five years (2019-2023) stood at 2.6%.

Looking ahead to the forecasted period from 2024 to 2028, the CAGR is expected to be around 1.81%, projecting a gradual increase, reaching 6.05 million units by 2028. This indicates a steady but slower growth pattern.

Future trends to watch for include the impact of emerging technologies such as electric vehicles and autonomous driving, potential regulatory changes aimed at reducing emissions, and shifts in consumer preferences towards sustainable and connected cars. The evolving infrastructure and economic policies in Saudi Arabia will also play a crucial role in shaping the automotive market.