Saudi Arabia Dealer ‘NMC Kia’ On-Site Report
Kia leaps from 6th in 2022 to 3rd this year
Toyota holds the top market share, followed by Hyundai
Strong demand for SUVs in Saudi Arabia
Kia’s strong performance driven by strengths in RV vehicles
Legalization of women driving increases demand for small SUVs
On the 28th (local time), a female customer receives consultation for a vehicle purchase at the NMC Kia dealer located on King Abdul Aziz Road in Jeddah, Saudi Arabia. Women have been allowed to drive in Saudi Arabia since 2018. Photo provided by Kia
[Financial News, Jeddah (Saudi Arabia) = Reporter Choi Jong-geun] “Kia, like Hyundai or Japanese brand Toyota, holds high value and is increasingly recognized for its design, technology, and product reliability,” said Abdullah Alam, Senior Product Manager of NMC Kia, when asked about Kia’s distinctive strengths in the local market. Alam mentioned, “Saudi consumers perceive Kia as a trustworthy and durable vehicle brand.”
According to industry sources on the 30th, NMC Kia is the official Kia dealer in seven administrative regions of Saudi Arabia (Tabuk, Medina, Mecca, Al Baha, Asir, Jazan, Najran). The NMC Kia ‘Jeddah-King Abdul Aziz Road Showroom’, visited on this day, is a large exhibition center located on King Abdul Aziz Road, a 14-lane highway connecting Jeddah International Airport to the Al Andalus region along the Red Sea. The showroom was bustling with employees and customers consulting with each other, with an average of about 50 visitors daily.
Kia is ranking 3rd with an 8% market share in the Saudi Arabian market from January to August this year. While it was 6th place in 2022 and 4th last year, this year it climbed to 3rd place. The top spot goes to Japan’s Toyota, with a market share of 28%. Although Toyota maintains its lead, the gap with other brands has narrowed significantly. The combined market share of Hyundai (15%) and Kia is 23%, only 5 percentage points behind Toyota. Alam said, “Among the top three brands in Saudi Arabia, two are Korean brands, Hyundai and Kia,” adding that “Kia grew 33% from January to August this year, while Toyota decreased by 4%. Thanks to innovations in technology and design, Korean brands are gaining strong popularity.”
Interior view of the NMC Kia exhibition center on King Abdul Aziz Road in Jeddah, Saudi Arabia. Photo=Reporter Choi Jong-geun The main driver of Kia’s expanding market share is the SUV. Saudi Arabia traditionally had high demand for sedans, but with the global trend shifting, SUVs have become increasingly popular in Saudi Arabia as well. Alam noted, “The popularity of SUVs has significantly increased over the past 5 to 6 years in Saudi Arabia, a change prompted by many brands worldwide launching SUV models.” Hyundai and Kia offer a full range of SUVs from small to large, and in line with market changes, Kia’s strength in recreational vehicles (RVs) has led to its prominent growth.
Kia is also actively expanding its presence in the electric vehicle sector. The Saudi government is accelerating the transition to electric vehicles. Although not yet released domestically, EV5 cars are available in Saudi Arabia, and Ionic 5 and Ionic 6 are also on sale locally. According to Gawtam Arun, Product Manager at Kia Middle East, “With Kia driving electromobility, awareness has increased,” adding, “Many Saudis are eager to experience electric vehicle technology.”
Last year, about 2.4 million cars were sold in the Middle Eastern automotive market, with Saudi Arabia accounting for about 790,000 units. Saudi Arabia represents 33% of total Middle East sales, indicating a significant market. With a population of approximately 35 million, a gender ratio of 6:4, and 74% of the population under 40, the Saudi automotive market is seen as having high future growth potential.
Continuous population growth and the legalization of women driving also positively impact market expansion. Alam noted, “Since 2018, when women were allowed to drive in Saudi Arabia, there has been explosive demand for small SUVs among female customers.” Models like Kona, Sonet, and Seltos are popular among female drivers. During a visit to the showroom, female customers browsing or consulting for car contracts were easy to spot.
Alam explained, “Saudi households traditionally had personal or family drivers, who would use vehicles like the Carnival to transport women to schools or shopping malls. However, as women started driving themselves, small SUVs have become popular.”