Saudi Arabia Autos Report - Business Monitor International - Industry Reports

Saudi Arabia Autos Report

Saudi Arabia Autos Report - Business Monitor International - Industry Reports
Saudi Arabia Autos Report
Published Sep 24, 2016
32 pages — Published Sep 24, 2016
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Abstract:

Given the extent of the damage to the construction industry, we expect a further contraction in CV sales, albeit milder at -.- , in ----. With the government cutting back on infrastructure spending we expect more widespread job cuts such as those seen at Saudi Binladin Group, which laid off --,--- workers in May ----. ...Therefore, we believe it will only be in ---- when there is positive growth in the CV segment, and even then volumes for the rest of our forecast period to ---- will remain well below previous highs of around ---,--- units. In terms of passenger vehicles, consumers are being squeezed as the ---- budget, the country s first fiscal retrenchment plan, introduced immediate hikes to the prices of fuel, water, electricity, ethane (the main feedstock for petrochemicals) and gas. One other budget measure - the plan to introduce a value-added tax ...In terms of passenger vehicles, consumers are being squeezed as the ---- budget, the country s first fiscal retrenchment plan, introduced immediate hikes to the prices of fuel, water, electricity, ethane (the main feedstock for petrochemicals) and gas. One other budget measure - the plan to introduce a value-added tax

...New vehicle sales figures for -M-- have borne out our cautious short-term view on the prospects for the Saudi Arabian autos sector. According to information from the BestSellingsCarsBlog website, new vehicle sales were down by --.- over the January-April period, to just ---,--- units. ...Our expectations are for a slightly worse performance over the full year, given the country s ongoing economic slowdown, currently targeting a --.- contraction in new vehicle sales. Across ----, Saudi Arabia s historically buoyant autos market will be a victim of the government s spending cutbacks, which will erode the spending power of consumers and businesses alike. As our Country Risk team expect the rollback of infrastructure projects to hit the construction industry the hardest, we expect the commercial vehicle (CV) segment to underperform the overall autos market and contract for the next two years as heavy vehicle demand is dampened. ...Across ----, Saudi Arabia s historically buoyant autos market will be a victim of the government s spending cutbacks, which will erode the spending power of consumers and businesses alike. As our Country Risk team expect the rollback of infrastructure projects to hit the construction industry the hardest, we expect the commercial vehicle (CV) segment to underperform the overall autos market and contract for the next two years as heavy vehicle demand is dampened.

...This quarter, we maintain our negative short-term stance towards the Saudi Arabian new vehicle sales market. ...As a result, we maintain our forecast of a --.- contraction in sales over the full year. We expect the CV segment to underperform the overall autos market and contract for the next two years as heavy vehicle demand falls. A proposed VAT in ---- will create an uptick in car sales in ---- as consumers aim to beat the tax. ...

  
Source:
Document ID
1749-012X
Country
Industry
Format:
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Business Monitor International - Industry Reports—Established in 1984, Business Monitor International is a leading online publisher of specialist business information on global emerging markets. Business Monitor's range of quarterly services covers political risk, finance, macroeconomic performance, outlook and forecast, industry sectors and the business operating environment. Each Industry Report has been researched at source, and features latest-available data covering production, sales, imports and exports; 5-year industry forecasts through end-2012; company rankings and competitive landscapes for multinational and local manufacturers and suppliers; and analysis of latest industry developments, trends and regulatory changes.

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MLA:
Business Monitor International - Industry Reports. "Saudi Arabia Autos Report" Sep 24, 2016. Alacra Store. Dec 09, 2016. <http://www.alacrastore.com/storecontent/Business-Monitor-International-Industry-Reports/Saudi-Arabia-Autos-Report-2026-431>
  
APA:
Business Monitor International - Industry Reports. (2016). Saudi Arabia Autos Report Sep 24, 2016. New York, NY: Alacra Store. Retrieved Dec 09, 2016 from <http://www.alacrastore.com/storecontent/Business-Monitor-International-Industry-Reports/Saudi-Arabia-Autos-Report-2026-431>
  
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