Saudi Arabia Automotive Aftermarket By Vehicle Type (Two-Wheelers, Commercial Vehicle, Passenger Cars), By Component (Tires, Body & Mechanical parts, Batteries, Accessories & Vehicle Care Products, Lubricants), By Sales Channel (Online, Offline), By Region, Competition, Forecast and Opportunities, 2020-2030F

Market Overview

Saudi Arabia Automotive Aftermarket was valued at USD 6.7 Billion in 2024 and is expected to reach USD 9.5 Billion by 2030 with a CAGR of 6.5% during the forecast period. The Saudi Arabian automotive aftermarket industry is experiencing significant growth, driven by a variety of factors. One of the main drivers is the increasing number of vehicles on the road, as the country continues to see a rise in car ownership due to economic development and growing disposable incomes. As the number of vehicles expands, the demand for replacement parts, maintenance services, and customization options grows steadily. The popularity of vehicle customization, especially among younger consumers who prefer unique modifications, is further boosting the demand for aftermarket products. Technological advancements in the automotive industry, such as the adoption of electric vehicles and smart car systems, are also contributing to a shift in aftermarket services, creating opportunities for new products and services tailored to modern vehicles. In alignment with Vision 2030, Saudi Arabia has invested over USD 5 billion in developing local automotive manufacturing capabilities. This includes partnerships with global manufacturers like Lucid Motors and Hyundai, aiming to produce over 300,000 vehicles annually by 2025. Such investments not only enhance domestic production but also stimulate the demand for aftermarket components, as a growing vehicle base requires maintenance and parts replacement

The automotive aftermarket is undergoing dynamic trends, particularly with the rise of digitalization and e-commerce platforms. Consumers are increasingly turning to online marketplaces to purchase parts, accessories, and services, which is reshaping the retail landscape. The shift towards online platforms allows consumers to compare prices, access a wider range of products, and enjoy the convenience of doorstep delivery. In response, businesses are adapting by enhancing their digital presence, offering seamless online shopping experiences, and using digital tools to better manage inventory and customer relationships. Moreover, the growing awareness of the benefits of preventive maintenance and the increasing adoption of advanced automotive technologies have encouraged consumers to invest in high-quality aftermarket products to enhance vehicle performance and longevity. The Saudi government is significantly investing in local automotive production to reduce dependency on imports and stimulate economic growth. In 2024, over 1,300 industrial licenses were awarded, attracting investments exceeding USD 13.3 billion. This initiative is part of the National Industrial Development and Logistics Program (NIDLP), aiming to increase the number of factories to about 36,000 by 2035 and tripling the industrial GDP.

Market Drivers

Growth in Vehicle Ownership

The growing number of vehicles on the road is one of the most significant drivers of the automotive aftermarket in Saudi Arabia. As more individuals and families acquire vehicles, whether due to rising incomes, favorable financing options, or a shift towards personal mobility, the need for aftermarket products and services naturally increases. More vehicles require regular maintenance, replacement parts, and customization, leading to a higher demand for aftermarket services. This trend is expected to continue as the automotive market in Saudi Arabia grows, thus fueling further demand for aftermarket solutions. Customization is a rising trend among Saudi consumers, especially the younger demographic. Vehicle owners increasingly seek ways to personalize their vehicles to reflect their lifestyle, taste, and identity. From performance upgrades to cosmetic enhancements like body kits, custom wheels, and interiors, aftermarket businesses are seeing a growing demand for these products. The desire for unique and individualized vehicles is driving growth in the sector, offering businesses lucrative opportunities to cater to these specific needs with diverse products and services.

Technological Advancements in Vehicles

Technological innovations in the automotive sector are driving demand for specialized aftermarket products. The rise of electric vehicles (EVs), hybrid models, and advanced driver-assistance systems (ADAS) is prompting the need for new aftermarket services. This includes the supply of EV-specific components such as batteries, electric drivetrains, and charging infrastructure. As cars become smarter and more connected, there’s an increased need for products and services like software updates, diagnostics tools, and sensor calibration, creating a substantial market for technology-focused aftermarket solutions. There is a growing emphasis on preventive maintenance among Saudi vehicle owners, contributing to the market's growth. Car owners are becoming more aware of the importance of maintaining their vehicles to ensure longevity and performance. As consumers become more knowledgeable about the benefits of preventive maintenance, the market for high-quality aftermarket products and services expands.

Rising Disposable Income and Lifestyle Changes

Saudi Arabia's growing economy and rising disposable income are fueling increased demand for automotive products and services. With more individuals having access to discretionary spending, consumers are more likely to invest in vehicle upgrades and maintenance. People are increasingly seeking convenience, quality, and luxury in their automotive choices, making the market for premium aftermarket products more attractive. This shift in consumer behavior, driven by greater purchasing power and changing lifestyles, creates opportunities for high-end aftermarket businesses to cater to an emerging affluent segment. As disposable incomes rise, Saudi consumers are allocating more funds to leisure and entertainment. In the three months ending in September 2024, tourism spending increased by 27.25% year-on-year, reaching USD 6.68 billion. Additionally, 56.7% of consumers planned to increase their spending on travel, indicating a shift towards experience-oriented expenditures

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Key Market Challenges

Skilled Labor Shortage

The automotive aftermarket industry in Saudi Arabia faces a significant challenge with the shortage of skilled labor. As vehicles become more technologically advanced, there is an increasing demand for technicians who can handle complex systems such as ADAS, electric drivetrains, and diagnostics. However, there is a gap between the demand for such skilled professionals and the availability of adequately trained workers. The scarcity of specialized technicians poses a challenge for businesses aiming to provide high-quality services and meet the evolving needs of consumers.

Rising Raw Material Costs

A growing challenge in the automotive aftermarket is the rising cost of raw materials. Components such as metals, rubber, and plastics are critical to the production of aftermarket parts and accessories. As the prices of these materials increase due to global supply chain disruptions or inflationary pressures, businesses face higher production costs. This puts a strain on profit margins, and some businesses may struggle to maintain competitive pricing. Additionally, higher costs could result in consumers being less inclined to purchase premium or aftermarket products, affecting demand. Price sensitivity remains a persistent challenge in the Saudi automotive aftermarket. While consumers are willing to spend on vehicle maintenance and accessories, the price factor significantly influences purchasing decisions. Budget-conscious buyers may opt for lower-quality, cheaper aftermarket parts, which could lead to quality concerns and customer dissatisfaction. The challenge for businesses is to balance cost competitiveness with product quality while maintaining profitability in a price-sensitive market.

Key Market Trends

Digital Transformation in Retail

One of the most significant trends in Saudi Arabia’s automotive aftermarket is the digital transformation of retail and sales channels. Consumers are increasingly turning to online platforms to purchase automotive parts and accessories, and e-commerce is gaining momentum. Retailers are investing in user-friendly websites, mobile apps, and digital marketing to engage customers. This shift to digital platforms not only offers convenience but also enables consumers to compare prices, read reviews, and access a wider range of products than what traditional brick-and-mortar stores offer. The integration of advanced technologies into vehicles, such as autonomous driving features and electric powertrains, is influencing the aftermarket sector. As these new technologies become more common, demand for specialized aftermarket products, such as software for diagnostics, calibration, and parts specific to electric and autonomous vehicles, is expected to rise. E-commerce in Saudi Arabia is experiencing rapid growth, with projections indicating it will account for 46% of the retail sector by 2030. As of the fourth quarter of 2024, the Kingdom had 40,953 registered e-commerce businesses, marking a 10% year-on-year increase. 

Sustainability and Eco-friendly Products

Sustainability is becoming a key trend in the automotive aftermarket. Consumers and businesses are placing more importance on eco-friendly products, such as recyclable parts, energy-efficient accessories, and low-emission solutions. Companies are responding by offering environmentally conscious products that appeal to consumers concerned with reducing their carbon footprint. This trend reflects the broader global movement towards sustainability, and it is expected to become more prominent in Saudi Arabia's automotive aftermarket in the coming years. The Saudi government has set an ambitious goal for electric vehicles (EVs) to comprise 30% of Riyadh's vehicle fleet by 2030. This initiative is part of the broader Clean Mobility Saudi Arabia plan, which aims to achieve net-zero emissions by 2060. To support this transition, the government plans to install 5,000 EV charging stations nationwide by 2025, significantly boosting the demand for EV-related aftermarket products and services.

Segmental Insights

Component Type Insights

The automotive aftermarket in Saudi Arabia is composed of several key segments, each addressing specific vehicle needs. Tires represent a crucial category, essential for safety, performance, and fuel efficiency. Steady demand for replacement tires is driven by regular wear and an expanding vehicle population. Tires are designed for diverse conditions, including all-season, performance, and off-road use, making them indispensable for vehicle upkeep. Body and mechanical parts form another vital segment, encompassing engine components, suspension systems, brakes, and exhausts. These parts are critical to maintaining vehicle safety, performance, and regulatory compliance. As vehicles age, the need for replacement and upgrades in this segment grows, ensuring continuous demand. These components guarantee efficient and safe vehicle operation, highlighting their importance in the aftermarket. Batteries are increasingly significant due to modern vehicles’ reliance on electronic systems. Regular wear leads to frequent battery replacements, with consumers seeking aftermarket options suitable for standard and electric vehicles. Advances in battery technology have introduced a wider variety of high-performance choices that support evolving automotive demands.

Accessories and vehicle care products offer options that enhance comfort, aesthetics, and functionality. This segment includes seat covers, floor mats, audio systems, and cleaning supplies. Changing consumer preferences drive demand for personalization and improved driving experiences, expanding this segment continuously. Lubricants are essential for vehicle maintenance, reducing friction and wear in engines, transmissions, and other parts. Regular oil changes and fluid top-ups create steady demand, supported by advanced formulations tailored to different engines and driving conditions. Collectively, these segments form a comprehensive aftermarket ecosystem that sustains vehicle performance and customer satisfaction across Saudi Arabia’s growing automotive market..

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Regional Insights

In 2024, the Eastern region of Saudi Arabia was expected to dominate the automotive aftermarket market. This dominance can be attributed to several factors, including its significant urbanization and industrial development. The Eastern region, home to major cities like Dammam, Khobar, and Dhahran, serves as a hub for oil and gas industries, attracting a large number of vehicles and workers. The region has a high concentration of commercial vehicles, which increases the demand for aftermarket parts, including tires, lubricants, and mechanical components. The presence of large industries and a thriving infrastructure supports a steady flow of vehicles in need of regular maintenance and replacement parts. The Eastern region is also well-connected, with advanced road networks and proximity to key ports like the King Abdulaziz Port in Dammam. This makes it a critical location for both the supply and distribution of automotive parts, driving the availability and accessibility of aftermarket products. As trade and logistics activities increase, the demand for vehicle-related services grows, especially in sectors requiring heavy machinery and fleet maintenance. Commercial fleets in the region are a significant driver for aftermarket services, with businesses seeking efficient and cost-effective solutions for maintaining their vehicles. Made in Saudi' initiative encourages domestic production and services within the country. This program, part of the National Industrial Development and Logistics Program (NIDLP), aims to increase the non-oil domestic sector's contribution to GDP from 16% to 50% by 2030.

Recent Developments

• In 2023, Petromin's subsidiary, Electromin, formed a strategic partnership with Quantron AG to distribute EV light trucks in Saudi Arabia. This move aligns with the Kingdom's Vision 2030 goals to promote sustainable mobility. Additionally, Electromin collaborated with Siemens to establish a regional EV charging infrastructure, enhancing the accessibility of EVs across the country
• In June 2024, Ceer signed a USD 2.2 billion contract with Hyundai Transys to supply integrated electric vehicle drive systems. This collaboration aims to bolster Ceer's production capabilities and support the Kingdom's push towards electric mobility.
• Automechanika Riyadh, held from April 30 to May 2, 2024, showcased the latest technological advancements in the automotive aftermarket industry. The event highlighted the potential of nanotechnology to enhance vehicle durability and efficiency. Industry experts discussed the integration of Internet of Things (IoT) technologies and innovations in smart mobility, underscoring the sector's shift towards digital transformation and sustainable practices.
• In 2025, Saudi Aramco entered into a joint development agreement with Chinese EV giant BYD to advance new energy vehicle technologies . Additionally, the Public Investment Fund has established Ceer, the country's first homegrown EV brand, expected to attract foreign investments amounting to USD 149 million and contribute approximately USD 8 billion to the domestic economy by 2034.

Key Market Players

• Petromin Corporation
• Aljomaih Automotive
• Abdul Latif Jameel Motors
• Al Rajhi Takaful
• Bahri & Mazroei Group
• Ceer Motors
• ACDelco (General Motors)
• Mann+Hummel
• Bosch Automotive Aftermarket
• Gulf Cooperation Council (GCC) Automotive Trading Group

Report Scope:

In this report, the Saudi Arabia Automotive Aftermarket has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

•        Saudi Arabia Automotive Aftermarket, By Vehicle Type:

o    Two-Wheelers

o    Commercial Vehicle

o    Passenger Cars

•        Saudi Arabia Automotive Aftermarket, By Component:

o    Tires

o    Body & Mechanical parts

o    Batteries

o    Accessories & Vehicle Care Products

o    Lubricants

•        Saudi Arabia Automotive Aftermarket, By Sales Channel:

o    Online

o    Offline

•        Saudi Arabia Automotive Aftermarket, By Region:

o    Northern & Central

o    Eastern

o    Western

o    Southern

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Saudi Arabia Automotive Aftermarket.

Available Customizations:

Saudi Arabia Automotive Aftermarket report with the given market data, TechSci Research offers customizations according to the company’s specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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