Dublin, June 13, 2023 (GLOBE NEWSWIRE) -- The "Saudi Arabia Light Vehicle Leasing and Rental Market By Lease Type (Finance Lease, Full Rental), By Vehicle Type (Passenger Cars, Light Commercial Vehicle), By End-Use Industry, BY Booking, and By Region, Competition Forecast & Opportunities, 2018-2028" report has been added to ResearchAndMarkets.com's offering.
Saudi Arabia light vehicle leasing and rental market are expected to grow in the forecast period to the cost-effectiveness of leasing a vehicle over owning a new vehicle.
There are many established companies in the leasing and rental market that have been providing rental and leasing services to the citizens in the country, such as Budget Rent A Car System, Inc, Yelo, Avis Budget Group, Inc., Key Car Rental, etc. These companies have made it easy for the people of Saudi Arabia to take light vehicles on rent or on lease.
With time the demand for rental and leased vehicles has increased in the market. By seeing the business opportunities and growth in the leasing and rental market, many new start-ups have also emerged. To meet the emerging demand for leased and rental vehicles, the number of these vehicles has also risen in the country. This has led to an increase in the Saudi Arabia light vehicle leasing and rental market.
Increase in Demand for Rental and Leasing in the Corporate Sector
In Saudi Arabia, many corporate firms take passenger cars on lease and rent for their employees' pickup and drop service. As per the Ministry of Investment of Saudi Arabia (MISA) data, around 16544 new companies were registered in Saudi Arabia in the year 2022.
Most of the companies in the country provide cab services to the working employees from home to office Companies take passenger cars on lease for a short period of time, or they have another option of rental service in which they can rent the vehicle on a daily basis as per the need. This is more cost-effective as compared to owning a new one for private firms.
The leasing company offers passenger cars and other light commercial vehicles for leasing in two ways which are closed-end and open-end fleet leases. Many corporate firms prefer to take passenger cars and other light commercial vehicles on a closed-end lease which protects the business from residual risk as they can return the leased vehicle at the end of the lease with no obligation to resell it.
Owing to the benefits of leasing a vehicle over buying a new one, the number of leased passenger cars and light commercial vehicles is increasing, which is driving Saudi Arabia's light vehicle leasing and rental market.
Cost Effectiveness of Leasing/Rental
Leasing or renting a light vehicle can have significant advantages over outright purchasing a new one, as it could save a huge up-front cost of buying a vehicle. Large amounts of capital saved can be preserved for other usages such as operational expenditures, manpower, etc.
Also, budgeting or renting is easy, as the payments majorly remain the same throughout the agreement period. Long-term leasing of passenger cars or light commercial vehicles is considered significantly cost-effective over other forms of owning the vehicle fleets as contract durations, depreciation curves, and maintenance requirements are reasonably predictable.
The cost-effective advantages of leasing and renting light vehicles are anticipated to drive the Saudi Arabia light vehicle leasing and rental market in the forecast years.
Logistic Solutions for Automotive Companies
Saudi Arabia has no manufacturing plant for any automotive company, due to which, every year, around half a million cars are imported from around the world.
The cars' prices are too high as they are brand new, and the import duty on those cars is also high, due to which the purchasing price of the vehicle for the customer is way too high. Nowadays, in Saudi Arabia, the demand for leased and rental vehicles has increased among the people.
The number of tourists coming to the country has increased, and tourists prefer to take vehicles on leases for a short period of time as they find it the most convenient way for them. The leasing companies provide more interesting offers and vouchers on the website, due to which more and more customers are attracted to their site.
Market Dynamics
Market Drivers
- Increasing Environmental Concerns Among the People
- Stringent Government Policies
Market Challenges
- High Price Compared to IC Engine Based Vehicle
- Lack in Number of Charging Stations
Market Trends & Developments
- Growing Use of Electric Two-Wheeler in E-Commerce
- Increasing Demand for Emission-Free Public Transportation Systems
- Growing Market Penetration Due to Addition of Market Players
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the Saudi Arabia light vehicle leasing and rental market.
- Budget Rent a Car System, Inc
- Yelo
- Avis Budget Group, Inc.
- Key Car Rental
- LUMI Rental Co. Ltd.
- Hanco (Al Tala'a International Transportation Co. Limited)
- Al FARIS RENT A CAR
- eZhire (Al Jazirah rent a Car)
- AutoWorld
- Yahma Rent A Car
Report Scope:
Saudi Arabia Light Vehicle Leasing and Rental Market, By Lease Type
- Finance Lease
- Full Rental
Saudi Arabia Light Vehicle Leasing and Rental Market, By Vehicle Type:
- Passenger Car
- Light Commercial vehicles
Saudi Arabia Light Vehicle Leasing and Rental Market, By End-Use Industry:
- FMCG
- Construction
- Corporate
- E-Commerce
Saudi Arabia Light Vehicle Leasing and Rental Market, By Booking:
- Offline
- Online
Saudi Arabia Light Vehicle Leasing and Rental Market, By Region:
- Western Region
- Northern and Central Region
- Eastern Region
- Southern Region
For more information about this report visit https://www.researchandmarkets.com/r/1fvb5h
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