The auto accessories market in the Kingdom of Saudi Arabia (KSA) is witnessing steady growth bolstered by a growing population and use of personal vehicles due to limited public transportation. Personalisation is quickly becoming a strong differentiator as customers look for ways to make their vehicles stand out. As automotive demand in the region remains weak, accessories become a viable option to boost dealers’ profitability.
Frost & Sullivan’s industry docket, Auto Accessories Market Outlook in Saudi Arabia (KSA), Forecast to 2022, finds that accessories sold through dealers at the time of a new vehicle purchase are likely to grow by 35 percent within the next six years as a result of higher demand for personalized vehicles. The docket provides a strategic overview of the KSA automotive accessories aftermarket. Market dynamics, lucrative accessory categories, distribution practices, and customer preferences are also assessed.
To access more information on this analysis, please click here. A macro-micro overview showcasing insights relative to global trends across industries is available for the Middle Eastern & North African (MENA) and South Asian (India) markets.
On an average, customers are expected to spend SAR 620-630 on accessories when purchasing new vehicles, with wheel rims, window tinting, and electronics accounting for over 50 percent of such expenses.
“Although alloy wheel rims are expected to remain the top accessory purchased by KSA customers, electronic accessories such as navigation, DVD systems, LED lights and rear parking sensors are becoming increasingly more popular,” said Frost & Sullivan Mobility Senior Consultant Vitali Bielski. “At the same time, owners of full-size pickups (e.g., Ford F-150, GMC Sierra, etc.) are expected to continue focusing on bedliners, side steps, and tonneau covers.”
Auto accessory recommendations for dealerships and independent channels include:
- Establishing an online presence to educate customers on special offers and range of accessories;
- Sourcing accessories locally to increase bottom line;
- Integrating accessories into the new vehicle sales process;
- Increasing awareness of accessories via in-store displays; and
- Having accessory sales targets as part of overall monthly sales targets for salespeople in dealerships.
“The future development of the KSA new car market is heavily influenced by volatile demand and high levels of uncertainty,” noted Bielski. “To address some of these challenges, market participants should educate customers on the accessories available using new promotional tools such as social media and tablets.”