Saudi Arabia Automotive
Battery Market is anticipated to grow at decent CAGR in terms of value during
the forecast period by 2028. Rapidly increasing number of passenger car,
two-wheeler, light commercial vehicle escalating fleet size across the country
to drive the Saudi Arabia Automotive Battery Market in the upcoming years.
In Saudi Arabia, passenger
car and are the most preferable vehicles in terms of shared mobility, logistics,
and travelling. Passenger cars has the high horsepower in combination with
dynamic engines, due to which these are suited for higher accelerations. Therefore,
high power for the initiation of engine is generated by the battery. Nowadays, people
are adopting battery powered vehicles due to the concern of the environment
which is further resulting in increasing the sales of automotive battery in the
country.
The spread of COVID-19
pandemic has created both import and export crisis in Saudi Arabia. According
to the Saudi Arabia’s General Authority of Statistics, the total exports of the
country in the first quarter of 2020, showed a decline of 21.9% as compared to
Q1 2019. Imports on the other hand, showed a decline of 11.9% as compared to
the same period of 2019. In Q2 2020, imports in the country shows a decline of
24.2% as compared to Q2 2019. Saudi Automotive Battery Market, being an import
driven market, witnessed a negative impact from the pandemic.
Rising Online Sales
Growing internet usage has
altered business strategies for several industries throughout time, including
the automobile battery sector. A significant component in the demand-supply
cycle, the e-commerce sector now offers customers home delivery of a wide range
of products. The e-commerce platform is being used by the car industry to
increase sales across a wide range of countries. The battery market in Saudi
Arabia is served by several significant online retailers. In the purview, Online
battery shopping is anticipated to grow over the forecast period.
Penetration Of Chinese Players
A few prominent Chinese
battery manufacturers are entering the Saudi Arabia market for batteries because
of the significant growth in the number of country's vehicle. The rising need
for affordable batteries is a key factor in the expansion of Chinese batteries
in the area. All battery makers have an equal chance to profit from the rising
battery demand in Saudi Arabia because the country's automotive battery market
is entirely import-driven. Numerous well-known battery firms in Saudi Arabia
are contending with fierce rivalry as Chinese automobile batteries become more
widely used. In addition, Chinese batteries are less expensive than premium batteries,
which is increasing demand for them. By entry of Chinese brands battery in the
Saudi Arabia market the demand of battery is get fulfilled easily and it is
driving the market in a positive way.
Government Initiatives
Government initiatives in Saudi Arabia
may help to advance the use of electric vehicles there. For the first EV pilot
project in Saudi Arabia, the Saudi Electricity Company has agreements with
Takaoka Tokyo, Nissan Motor, and Tokyo Electric Power Company. This agreement
enables the construction of fast-charging facilities for electric vehicles.
Most recently, Saudi Arabia and the UK signed a Memorandum of Understanding
(MoU) to cut carbon emissions and support Saudi Vision 2028, which calls for at
least 30% electrified passenger cars. The memorandum of understanding commits
the two nations to sharing knowledge and working together to create
technologies, such as smart grids, which will afterwards fuel the rise of car
batteries.
Technological
Advancement
Lithium-ion
batteries charge more quickly and last longer than conventional battery
technology. Lithium-ion batteries are lighter and have a greater power density
and battery life. When compared to other traditional batteries like
nickel-metal hydride and lead-acid batteries, the lithium-ion battery for
automobiles has emerged as an environmentally friendly and rechargeable energy
source. The market is expected to increase at the fastest rate in the coming
years. It is because, lithium-ion batteries last longer between replacements due
to the superior plate technology. Many battery manufacturers have started to
invest in the research and development department in order to develop the
battery technology for the reduction of battery prices, which will help in the
reduction of overall price of vehicles. By the reduction in price of battery
the adoption of the battery in the aftermarket will increase with time, this is
expected to drive the Saudi Arabia automotive battery market in the coming
years.