[Report] The Secret to Stealing Saudi Women's Hearts... Visiting Kia's Local Dealership
Saudi Arabia Allows Women to Drive in 2018
Increase in Female Drivers Boosts Small SUV Sales
Kia Rises to 3rd in Saudi Market Share
Young Design, Excellent Durability, Reasonable Pricing Strategy
"Saudi women driving for the first time in their lives prefer safe cars at reasonable prices. Kia's small sport utility vehicles (SUVs) like the Sonet and Seltos are especially popular."
Abdullah Alram, Senior Product Manager at NMC (National Marketing Company), said this on the 28th (local time) during a meeting with domestic reporters at the NMC-Kia dealership located in Jeddah, Saudi Arabia. NMC is the exclusive dealer supplying Kia vehicles across seven administrative regions in Saudi Arabia. The dealership visited that day displayed Kia vehicles rarely seen in Korea, lined up from the Sportage Long Body model to the Carens and EV5.
NMC Kia dealership located on Jeddah-King Abdul Aziz Road in Jeddah, Saudi Arabia
[Photo by Kia]
Kia recorded an 8% market share in the Saudi automobile market from January to August this year. In industry rankings, it stands third after Toyota and Hyundai. Saudi consumers prefer practical and durable vehicles suited to the hot desert climate. Also, with 51% of the population under 30 years old, maintaining youthful design and product appeal tailored to the demographic composition is important. Manager Alram added, "Kia is recognized in Saudi Arabia for practical and durable vehicles," and "its design and technology are also not lacking."
A representative from Kia's local dealer in Saudi Arabia, NMC, is explaining the vehicle to a customer.
[Photo by Kia]
Recently, female drivers have been gaining attention in the Saudi market. The number of drivers increased after women were allowed to obtain driver's licenses in 2018. In particular, sales of small SUVs surged. In line with this trend, Kia's small SUV sales have also significantly increased. The proportion of small SUVs such as the Sonet and Seltos rose to 25% of cumulative sales (44,500 units) in the third quarter of this year.
Manager Alram said, "Saudi women driving for the first time feel that SUVs with higher ground clearance are safer than sedans," and "small SUVs like the Sonet and Seltos are gaining explosive popularity." About 50 customers visit this dealership daily on average, with women being the main customers. They usually visit with their husbands or fathers and mainly purchase small SUVs. Even if the car ownership is registered under a male name, the actual driver is increasingly female.
NMC Kia dealership located on Jeddah-King Abdul Aziz Road in Jeddah, Saudi Arabia
[Photo by Kia]
Thanks to the surge in young and female drivers, Kia is on the verge of surpassing 50,000 units annually in Saudi Arabia for the first time in nine years this year. The company’s estimated sales target for this year is about 64,800 units. Kia’s sales in Saudi Arabia maintained around 90,000 units in 2015 but gradually declined to about 20,000 units in 2021.
However, the trend reversed starting last year. Following a record sales of 48,000 units last year, sales from the first to third quarter this year (44,000 units) increased by 32%, continuing a steady growth trend.
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Kia has set a goal to sell 260,000 units across the Middle East market by 2030, using Saudi Arabia?the largest market in the Middle East?as a foothold. Last year, it sold about 157,000 units in the Middle East. The company plans to gradually increase the proportion of electric vehicles in total sales across the Middle East by expanding from the current four electric vehicle models to eleven in the future. Manager Alram said, "Starting next year, various electric vehicle models such as the EV3~6 and EV9 will be sold in Saudi Arabia."
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