Budget Saudi expects boost from high demand for cars in 2018

The Saudi car market is expected to see higher demand in 2018, driven by the nationalization of many jobs and higher employment among youth, who will need to buy second-hand cars or use rental services, Budget Saudi CEO Fawaz Danish told Argaam in an exclusive Sunday.

“We also cannot undermine the impact of the decision to allow Saudi women to drive, as this will revive the market and boost demand for rental services and new cars, but I don’t expect this to materialize quickly,” Danish said.

Commenting on the company’s performance, Danish added that Budget Saudi reported “strong and satisfactory” financial results for 2017, despite lower revenue from short-term rentals and a decline in the sales value of second-hand cars.

Revenue from short-term rentals dropped 25 percent year-on-year in 2017, while the sales value of second-hand vehicles declined between 5 percent and 10 percent.

The company also allocated SAR 14.9 million in provision to hedge against impairment in its Indian affiliate, TranzLease so as to exit the stake, he added.