Korean auto firms may see sales recovery in Saudi Arabia

Sales of Korean car makers in Saudi Arabia may pick up after the country lifted a ban on women driving, according to a local trade agency Monday.

Saudi Arabia decided last month that it would start allowing women who are in their 30s or older to drive from June 2018, partially ending the controversial regulation. 

According to the Korea Trade Investment Promotion Agency, the rule change will create an increase in auto demands as women will emerge as potential drivers.

Of the total 10 million female population, the number of women who are aged between 30 and 54 reaches some 3.2 million, the report said in a statement.

Demand for subcompact sedans and sport-utility vehicles are expected to increase in particular as they are favored by local women drivers in Saudi Arabia, the report said.

“Korean car makers will plan to prepare car models that can appeal to women drivers in Saudi Arabia,“ an industry source said. “It may take time for Saudi Arabia’s car market to recover, but the rule change is expected to bring positive impacts in the market,” he added.

South Korea’s vehicle exports to Saudi Arabia fell by 36 percent on-year in 2016 and 16 percent in 2017, largely due to low oil prices and increasing taxes on expats, the report said. 

By Shim Woo-hyun (ws@heraldcorp.com)