Saudi Arabian New Passenger Car Sales Tipped To Grow By 15% In 2014
News: Saudi Arabia's new passenger car sales are expected to grow by 15% y-o-y in 2014 to 609,500 units, according to new market analysis cited by Zawya. The country's total new vehicle market is predicted to expand by 12.6% y-o-y to 777,212 units. In particular, a 4.8% y-o-y sales growth is expected in Saudi Arabia's commercial vehicle market during 2013, totalling 167,712 units. The upbeat forecast is partly based on the expected strong performance of the country's economy.
BMI View: BMI maintains an upbeat view on the Saudi new car sales market at the mid-point of 2013. Early indications (from the first two months of the year) show that new vehicle sales are up by 14%, at 121,583 units. For 2013, BMI maintains its forecast for real GDP growth of 4.1%, rising to 4.6% in 2014 on the back of a slight rebound in oil exports. Business activity in the private sector remains supported by the government's loose fiscal policy stance, easy credit conditions and robust consumer confidence.