Stability Is Positive For Auto Sales

Growth in auto sales in Saudi Arabia has recovered from the slump caused by the 2009 financial crisis. BMI forecasts that auto sales will grow by a steady 6.99% year-on-year (y-o-y) in 2011, to a total of 688,883 units. We view Saudi Arabia as a stable market for auto sales, with similar growth rates throughout our forecast period leading to annual sales of around 950,000 vehicles in 2015. Increased demand for new automobiles is currently being underpinned by impressive overall economic growth on the back of continuing high oil prices. Falling inflation is another supportive factor.

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