Burnaby, British Columbia, Canada, December 18, 2015 --(PR.com
)-- According to a TechSci Research report "Saudi Arabia Commercial Vehicles Market Forecast & Opportunities, 2020," the commercial vehicles market in Saudi Arabia is forecast to grow at a CAGR of over 8% during 2015-2020. Commercial vehicle market in the country is predominantly import driven, with most of the vehicles being shipped as CBUs (Completely Built Units) or SKDs (Semi Knocked Down) units. Saudi Arabia is poised to witness continuing growth in demand for commercial vehicles, due to robust growth in the country's infrastructure projects coupled with anticipated increase in bus imports into the country, in order to address growing transportation requirements of Hajj and Umrah pilgrims.
The commercial vehicles market in Saudi Arabia is forecast to be dominated by light commercial vehicles segment, followed by buses and medium & heavy commercial vehicles. With increasing government focus on diversification into non-oil sectors coupled with continuing growth being witnessed in Saudi Arabia’s logistics sector, demand for light as well as medium & heavy commercial vehicles is expected to grow through 2020. Moreover, the bus segment is anticipated to witness the fastest growth rate in the forecast period due to strongly growing demand for public transportation.
Almost all major global OEMs have collaborated with local companies and have marked their presence in Saudi Arabia commercial vehicle market. Toyota, followed by Isuzu, Hyundai, Mercedes, Volvo, and various Chinese companies, are some of the leading players in Saudi Arabia commercial vehicles market. Mercedes, MAN and Isuzu are a few leading companies operating their assembly plants in the country. Zahid Tractors & H.M. Ltd., the exclusive distributor of Volvo, has acquired land in King Abdullah Economic City (KAEC) for establishing an assembly plant for Volvo in the coming years.
“In 2015, the government announced construction projects worth USD 1 trillion, which is expected to significantly contribute towards growth of the commercial vehicles market in Saudi Arabia during the coming years. Also, on account of deteriorating traffic situation and increasing demand for labour transport need for an effective public transportation system in the country is rising. This is forecast to drive demand for buses in the country through 2020,” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.