Report Description

Saudi Arabia light vehicle leasing and rental market is expected to grow in the forecast period, to cost effectiveness in leasing a vehicle over owning a new vehicle. There are many established companies in the leasing and rental market that have been providing rental and leasing services to the citizens in the country, such as Budget Rent A Car System, Inc, Yelo, Avis Budget Group, Inc., Key Car Rental, etc. These companies have made it easy for the people of Saudi Arabia to take light vehicles on rent or on lease. With time the demand for the rental and leased vehicles has increased in the market. By seeing the business opportunities and growth in the leasing and rental market, many new start-ups have also emerged. To meet the emerging demand for leased and rental vehicles, the number of these vehicles has also risen in the country. This has led to an increase in the Saudi Arabia light vehicle leasing and rental market.

Increase in Demand for Rental and Leasing in the Corporate Sector

In Saudi Arabia, many corporate firms take passenger cars on lease and rent for their employees' pickup and drop service. As per the Ministry of Investment of Saudi Arabia (MISA) data around 16544 new companies were registered in Saudi Arabia in the year 2022.Most of the companies in the country provide cab services to the working employees from home to office Companies take passenger cars on lease for a short period of time, or they have another option of rental service in which they can rent the vehicle on a daily basis as per the need. This is more cost-effective as compared to owning a new one for private firms. The leasing company offers passenger cars and other light commercial vehicles for leasing in two ways which are closed-end and open-end fleet leases. Many corporate firms prefer to take passenger cars and other light commercial vehicles on a closed-end lease which protects the business from residual risk as they can return the leased vehicle at the end of the lease with no obligation to resell it. Owing to the benefits of leasing a vehicle over buying a new one, the number of leased passenger cars and light commercial vehicles is increasing, which is driving Saudi Arabia’s light vehicle leasing and rental market. 


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Cost Effectiveness of Leasing/Rental

Leasing or renting a light vehicle can have significant advantages over outright purchasing a new one, as it could save a huge up-front cost of buying a vehicle. Large amounts of capital saved can be preserved for other usages such as operational expenditures, manpower, etc. Also, budgeting or renting is easy, as the payments majorly remain the same throughout the agreement period. Long-term leasing of passenger cars or light commercial vehicles is considered significantly cost-effective over other forms of owning the vehicle fleets as contract durations, depreciation curves, and maintenance requirements are reasonably predictable. The cost-effective advantages of leasing and renting light vehicle are anticipated to drive the Saudi Arabia light vehicle leasing and rental market in the forecast years.

Logistic Solution for Automotive Companies

Saudi Arabia has no manufacturing plant for any automotive company, due to which, every year, around half a million cars are imported from around the world. The cars’ prices are too high as they are brand new and the import duty on those cars is also high, due to which the purchasing price of the vehicle for the customer is way too high. Nowadays, in Saudi Arabia the demand for leased and rental vehicles has increased among the people. The number of tourists coming to the country has increased, and tourists prefer to take vehicles on leases for a short period of time as they find it the most convenient way for them. The leasing companies provide more interesting offers and vouchers on the website, due to which more and more customers are attracted to their site.

Market Segmentation

The Saudi Arabia light vehicle leasing and rental market is segmented based on lease type, vehicle type,  end-use industry, booking,  region, and competitional landscape. Based on lease type, the market is further fragmented into finance lease, full rental. Based on vehicle type the market is divided into passenger cars, and light commercial vehicles. The market is further divided into end-use industry into FMCG, construction, corporate, and e-commerce. Based on booking the market is divided into offline and online.

Company Profiles

Budget Rent a Car System, Inc, Yelo, Avis Budget Group, Inc., Key Car Rental, LUMI Rental Co. Ltd, Hanco (Al Tala'a International Transportation Co. Limited), Al FARIS RENT A CAR, eZhire (Al Jazirah rent a Car), AutoWorld, Yahma Rent a Car are among the major market players in theSaudi Arabia light vehicle leasing and rental market.

Attribute

Details

Base Year

2022

Historical Years

2018 – 2021

Estimated Year

2023

Forecast Period

2024 – 2028

Quantitative Units

Revenue in USD Billion and CAGR for 2018-2021 and 2023E-2028F

Report Coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

Segments Covered

By Lease Type

By Vehicle Type

By End-Use Industry

By Booking

By Region

Regional Scope

Western Region, Northern and Central Region, Eastern Region, Southern Region

Country Scope

Saudi Arabia

Key Companies Profiled

Budget Rent a Car System, Inc, Yelo, Avis Budget Group, Inc., Key Car Rental, LUMI Rental Co. Ltd, Hanco (Al Tala'a International Transportation Co. Limited), Al FARIS RENT A CAR, eZhire (Al Jazirah rent a Car), AutoWorld, Yahma Rent A Car

Customization Scope

10% free report customization with purchase. Addition or alteration to country, regional & segment scope.

Pricing and Purchase Options

Avail of customized purchase options to meet your exact research needs. Explore purchase options

Delivery Format

PDF and Excel through Email (We can also provide the editable version of the report in PPT/pdf format on special request)

Report Scope:

In this report, the Saudi Arabia Light Vehicle Leasing and Rental Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Saudi Arabia Light Vehicle Leasing and Rental Market, By Lease Type

  • Finance Lease
  • Full Rental

Saudi Arabia Light Vehicle Leasing and Rental Market, By Vehicle Type:

  • Passenger Car  
  • Light Commercial vehicles  

Saudi Arabia Light Vehicle Leasing and Rental Market, By End-Use Industry:

  • FMCG
  • Construction
  • Corporate
  • E-Commerce 

Saudi Arabia Light Vehicle Leasing and Rental Market, By Booking:

  • Offline   
  • Online

Saudi Arabia Light Vehicle Leasing and Rental Market, By Region:

  • Western Region
  • Northern and Central Region
  • Eastern Region
  • Southern Region

·         Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Saudi Arabia light vehicle leasing and rental market.

Available Customizations:

With the given market data, TechSci Research offers customizations according to a 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).

Saudi Arabia Light Vehicle Leasing and Rental Marketis an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1.    Introduction

1.1.  Market Overview

1.2.  Key Highlights of the Report

1.3.  Market Coverage

1.4.  Market Segments Covered

1.5.  Research Tenure Considered

2.    Research Methodology

2.1.  Objective of the Study

2.2.  Baseline Methodology

2.3.  Key Industry Partners

2.4.  Major Association and Secondary Sources

2.5.  Forecasting Methodology

2.6.  Data Triangulation & Validation

2.7.  Assumptions and Limitations

3.    Executive Summary

3.1.  Market Overview

3.2.  Market Forecast

3.3.  Key Regions

3.4.  Key Segments

4.    Impact of COVID-19 on Saudi Arabia Light Vehicle Leasing and Rental Market

4.1.  Impact Assessment Model      

4.1.1.     Key Segments Impacted

4.1.2.     Key Regions Impacted

4.1.3.     Key Distribution Channel Impacted

5.    Voice of Customer

5.1.  Brand Awareness

5.2.  Factors Influencing Purchase Decision

5.3.  Brand Satisfaction Level

6.    Saudi Arabia Light Vehicle Leasing and Rental Market Outlook

6.1.  Market Size & Forecast

6.1.1.     By Value & Volume

6.2.  Market Share & Forecast

6.2.1.     By Lease Type Market Share Analysis (Finance Lease, Full Rental)

6.2.2.     By Vehicle Type Market Share Analysis (Passenger Cars, Light Commercial Vehicle)

6.2.3.     By End-Use Industry Market Share Analysis (FMCG, Construction, Corporate, E-Commerce)

6.2.4.     By Booking Market Share Analysis (Offline, Online)

6.2.5.     By Regional Market Share Analysis

6.2.5.1.         Western Region Market Share Analysis

6.2.5.2.         Northern & Central Region Market Share Analysis

6.2.5.3.         Eastern Region Market Share Analysis

6.2.5.4.         Southern Region Market Share Analysis

6.2.6.     By Company Market Share Analysis (2022)

6.3.  Saudi Arabia Light Vehicle Leasing and Rental Market Mapping & Opportunity Assessment

6.3.1.     By Lease Type Market Mapping & Opportunity Assessment

6.3.2.     By Vehicle Type Mapping & Opportunity Assessment

6.3.3.     By End-Use Industry Mapping & Opportunity Assessment

6.3.4.     By Booking Mapping & Opportunity Assessment

6.3.5.     By Region Mapping & Opportunity Assessment

7.    Saudi Arabia Passenger Cars Leasing and Rental Market Outlook

7.1.  Market Size & Forecast

7.1.1.     By Volume and Value

7.2.  Market Share & Forecast

7.2.1.     By Lease Type Market Share Analysis

7.2.2.     By End-Use Industry Market Share Analysis

7.2.3.     By Booking Market Share Analysis

7.2.4.     By Region Market Share Analysis

8.    Saudi Arabia Light Commercial Vehicle Leasing and Rental Market Outlook

8.1.  Market Size & Forecast

8.1.1.     By Volume and Value

8.2.  Market Share & Forecast

8.2.1.     By Lease Type Market Share Analysis

8.2.2.     By End-Use Industry Market Share Analysis

8.2.3.     By Booking Market Share Analysis

8.2.4.     By Region Market Share Analysis

9.    Market Dynamics

9.1.  Market Drivers

9.1.1.                    Increasing Environmental Concerns Among the People  

9.1.2.                    Stringent Government Policies

9.2.  Market Challenges

9.2.1.     High Price Compared to IC Engine Based Vehicle 

9.2.2.                    Lack in Number of Charging Stations

10.  Market Trends & Developments

10.1.              Growing Use of Electric Two-Wheeler in E-Commerce  

10.2.              Increasing Demand for Emission-Free Public Transportation Systems

10.3.              Growing Market Penetration Due to Addition of Market Players

11.  Porter’s Five Forces Model

11.1.              Competition Landscape

11.2.              Buyer Power

11.3.              Supplier Power

11.4.              Threat of New Entrants

11.5.              Threat of Substitutes

12.  SWOT Analysis

12.1.              Strength

12.2.              Weakness

12.3.              Opportunities

12.4.              Threats

13.  Competitive Landscape

13.1.              Company Profiles

13.1.1.  Budget Rent a Car System, Inc

13.1.1.1.      Company Details

13.1.1.2.      Products & Services

13.1.1.3.      Financial (As Reported)

13.1.1.4.      Recent Development

13.1.1.5.      Key Management Personnel

13.1.2.  Yelo

13.1.2.1.      Company Details

13.1.2.2.      Products & Services

13.1.2.3.      Financial (As Reported)

13.1.2.4.      Recent Development

13.1.2.5.      Key Management Personnel

13.1.3.  Avis Budget Group, Inc.

13.1.3.1.      Company Details

13.1.3.2.      Products & Services

13.1.3.3.      Financial (As Reported)

13.1.3.4.      Recent Development

13.1.3.5.      Key Management Personnel

13.1.4.  Key Car Rental

13.1.4.1.      Company Details

13.1.4.2.      Products & Services

13.1.4.3.      Financial (As Reported)

13.1.4.4.      Recent Development

13.1.4.5.      Key Management Personnel

13.1.5.  LUMI Rental Co. Ltd.

13.1.5.1.      Company Details

13.1.5.2.      Products & Services

13.1.5.3.      Financial (As Reported)

13.1.5.4.      Recent Development

13.1.5.5.      Key Management Personnel

13.1.6.  Hanco (Al Tala'a International Transportation Co. Limited)

13.1.6.1.      Company Details

13.1.6.2.      Products & Services

13.1.6.3.      Financial (As Reported)

13.1.6.4.      Recent Development

13.1.6.5.      Key Management Personnel

13.1.7.  Al FARIS RENT A CAR

13.1.7.1.      Company Details

13.1.7.2.      Products & Services

13.1.7.3.      Financial (As Reported)

13.1.7.4.      Recent Development

13.1.7.5.      Key Management Personnel

13.1.8.  eZhire (Al Jazirah rent a Car)

13.1.8.1.      Company Details

13.1.8.2.      Products & Services

13.1.8.3.      Financial (As Reported)

13.1.8.4.      Recent Development

13.1.8.5.      Key Management Personnel

13.1.9.  AutoWorld

13.1.9.1.      Company Details

13.1.9.2.      Products & Services

13.1.9.3.      Financial (As Reported)

13.1.9.4.      Recent Development

13.1.9.5.      Key Management Personnel

13.1.10.                Yahma Rent A Car

13.1.10.1.    Company Details

13.1.10.2.    Products & Services

13.1.10.3.    Financial (As Reported)

13.1.10.4.    Recent Development

13.1.10.5.    Key Management Personnel

14.  Strategic Recommendations/Action Plan

14.1.              Key Focus Areas

14.2.              Target Regions

14.3.              Target Vehicle Type

14.4.              Target Lease Type

15.  About Us & Disclaimer

Figures and Tables

Frequently asked questions

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The major trends for the Saudi Arabia light vehicle leasing and rental market include availability of logistic solutions, cost effectiveness of leasing/rental services, and growing market penetration due to addition of market players, etc.

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Major challenges for the Saudi Arabia Light Vehicle Leasing and Rental Market are limited financial options, periodic price fluctuation, and security money of the leased vehicle acting as a negative side for the customers.

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Passenger cars has the highest market share in the vehicle type segment, as the corporate sector prefers passenger cars for lease and rental services for the pickup and drop of employees.

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Some of the major companies in Saudi Arabia Light Vehicle Leasing and Rental Market are Budget Rent A Car System, Inc, Yelo, Avis Budget Group, Inc., Key Car Rental, LUMI Rental Co. Ltd, Hanco (Al Tala'a International Transportation Co. Limited), etc.

profile

Srishti Verma

Business Consultant
Press Release

Saudi Arabia Light Vehicle Truck Leasing and Rental Market to Grow at Impressive Rate

Dec, 2022

Leased vehicles are way to cost effective for the people as they can rent or take vehicle on lease according to the need, by this Saudi Arabia Light Vehicle Leasing and Rental Market is anticipated t