Saudi Arabia to see 3 mln women drivers on roads by 2020

Saudi Arabia’s automotive sector is set for a rapid transformation in the coming years, with 20 percent of the female population, or three million drivers, expected to be added to the Kingdom’s roads by 2020, said a whitepaper by research company Aranca.

The report said the lifting of the ban on women driving in the Kingdom in June 2018, along with recovering oil prices and economic policies aimed at boosting consumer spending, will result in an eight percent per annum increase of passenger vehicles sales until 2022.

In addition to new car sales, the positive impact of a new customer segment over the next 1-3 years will be felt in the Kingdom’s automotive aftermarket, which was valued at $7.4 billion in 2017, the report added.

The whitepaper further stated that key industry players are already taking initiatives to capitalise on opportunities created by women being allowed to drive, including the creation of women-only car showrooms, auto-insurance claims centres and driving schools dedicated to women. 

Aranca said 10 million vehicles will ply Saudi roads by 2022, including 6.5 million passenger vehicles and 3.5 million commercial vehicles. As a result, demand for spare parts and related auto services will grow six percent annually, reaching a value of $9.8 billion in 2022.