Used Car Export Country Guide Asia - Saudi Arabia
创建于2024.08.19
1. Basic Information
The Kingdom of Saudi Arabia (abbreviated as Saudi Arabia) is located on the Arabian Peninsula in southwest Asia, bordering the Persian Gulf to the east, and bordering Jordan, Iraq, Kuwait, Oman, Yemen, Bahrain, Qatar and other countries. Its capital is Riyadh, with a land area of 2.25 million square kilometers and a population of 32.2 million. In 2023, Saudi Arabia's GDP was US$1 trillion, a year-on-year decrease of 0.03%, and its per capita GDP was US$32,586. China and Saudi Arabia have actively strengthened the strategic docking of the "Belt and Road" construction with Saudi Arabia's "Vision 2030", and their cooperation in the fields of economy, trade, production capacity, finance, and infrastructure construction has continued to develop in depth. Saudi Arabia is my country's largest trading partner in the Middle East, and my country is Saudi Arabia's largest trading partner. In 2023, the bilateral trade volume between China and Saudi Arabia reached US$107.22 billion, a year-on-year decrease of 7.6%, of which China's exports to Saudi Arabia reached US$64.37 billion, a year-on-year increase of 25.7%, and China's imports from Saudi Arabia reached US$42.85 billion, a year-on-year increase of 37%. Saudi Arabia is my country's first billion-dollar trading partner in the Middle East. We mainly export mechanical and electrical products, steel, clothing, etc. to Saudi Arabia, and mainly import crude oil, petrochemical products, etc. Saudi Arabia is my country's largest crude oil supplier. In 2023, my country imported 85.96 million tons of crude oil from Saudi Arabia.
Saudi Arabia is rich in fossil energy, with proven crude oil reserves of 38.2 billion tons, accounting for 17.3% of the world's reserves, ranking second in the world. Proven natural gas reserves are 6.19 billion tons, accounting for 4.5% of the world's reserves, ranking sixth in the world. In addition, it also has gold, copper, iron, tin, aluminum, zinc, phosphate and other minerals.
2. Automobile Market Situation
Saudi Arabia has almost no automobile manufacturing industry, and automobiles mainly rely on imports. In recent years, higher oil prices and increased investment by private enterprises have driven Saudi Arabia's economic recovery and boosted Saudi car sales. In 2023, Saudi Arabia's car sales will reach 651,000 units, a year-on-year increase of 9.5%. In the first half of 2023, Saudi Arabia's car sales will reach 371,000 units, a year-on-year increase of 22.9%, a large increase. The market share of Chinese auto brands in Saudi Arabia continues to increase. In 2022, the sales of Chinese brand cars in Saudi Arabia exceeded 200,000 units, accounting for about one-third of Saudi Arabia's new car imports. Brands such as Changan, MG, and Geely entered the top ten new car sales in Saudi Arabia.
Since 2021, the Saudi government has strongly supported the development of new energy vehicles and announced the Saudi Green Initiative (SGI), which aims to achieve carbon neutrality by 2060 and reduce carbon dioxide emissions to 278 million tons per year by 2030. At the same time, the government is also investing heavily in the construction of charging infrastructure, aiming to configure a series of public electric vehicle charging stations across the country. At present, the Saudi electric vehicle market has the characteristics of a small base and great growth potential. According to statistics from the Saudi General Authority of Taxation and Customs (ZATCA), the total number of new energy vehicle imports in Saudi Arabia has reached 71,209, and electric vehicle sales in the first half of 2023 increased by more than 300% year-on-year.
The average annual import volume of used cars in Saudi Arabia is about 25,000-30,000 units, mainly Japanese, German and American cars. Saudi Arabia mainly imports second-hand cars through ports such as Dammam Port, Jubail Port, and Jeddah Port. Because there is zero tariff for mutual circulation of goods with the United Arab Emirates, most second-hand cars are re-exported from Dubai. The best-selling second-hand models locally include Toyota Alphard, Toyota Camry, Toyota Corolla, Toyota Hilux, Toyota Land Cruiser, Toyota Prado, Toyota Mark 1, Honda Odyssey, Nissan Skyline, etc. Since the outbreak of the COVID-19, Saudi Arabia has increased the value-added tax from 5% to 15%. The price of new cars has increased, so consumers have postponed the purchase decision of new cars. In addition, nearly 50% of the population in Saudi Arabia is under the age of 30, and this group of people is more People tend to buy second-hand cars, and many foreigners are also more willing to buy second-hand cars. The above factors have promoted the development of the Saudi second-hand car market and will continue to grow in the short term.
(3) Used car import policies and regulations
1. Import policy
Saudi Arabia only allows the import of left-hand drive vehicles without modifications to the vehicle's steering system. Used cars and other light vehicles cannot be more than 5 years old. For the import of used large/heavy trucks, the age must be less than 10 years. It is prohibited to import vehicles that have been involved in major accidents such as flooding, fire, collision or rollover. It is also prohibited to import vehicles that were previously used as police, emergency vehicles and taxis. In addition, most used auto parts cannot be imported into Saudi Arabia, but refurbished engine and transmission parts can be exempted if they meet certification standards.
Saudi Arabia requires that the imported vehicle body is intact. If the vehicle body damage occurs at the port of arrival, the relevant certificate of the competent authority must be submitted. If the importer's business registration does not include vehicle sales and imports, it may not import more than 1 vehicle per year. If the importer is not a citizen of the Gulf Cooperation Council countries, he must hold a valid residence authorization.
2. Tax policy
The import tariff rate for used passenger cars is 5%, and for used trucks is 12%. At the same time, a 15% value-added tax is also required. The customs valuation is based on the guide price published by the car manufacturer, and the current value of the vehicle is calculated based on the model year and depreciation rate, and the freight and insurance value are added. When calculating specifically, the customs deducts the value of the vehicle on a monthly basis. If it is imported in the first six months of its production year, it is considered a new car and no deductions are made: for vehicles imported in the last six months of the production year, a deduction of 2% per month will be made: for vehicles imported between the second and fifth years of the production year, a deduction of 10% per month will be made: after more than five years from the production year, the maximum deduction rate is 60% of the imported car price. Special vehicles and antique cars are excluded.
3. Documents required for import
• SASO certificate
• Legal purchase invoice
• Certificate of Origin
• Insurance certificate
• Customs fees
• Unloading Authorization
• Copy of license
Source: China Used Car Export Country Guide 2023
Contact
Leave your information and we will contact you.
Business
Business
Mail
Mail