KSA TIRE MARKET ANALYSIS

Market Concentration and Competitive Landscape

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Opportunity: Rising Disposable Income

Discretionary spending on non-essential items tends to rise with the disposable incomes of individuals and households. This macroeconomic relationship directly influences the automotive accessory market in KSA as well. As personal affordability enhances due to strong GDP growth, falling unemployment and stable inflation environment in the country, motorists are left with more surplus funds to spend on their vehicles and related upkeep and enhancement products including tires.

Saudi Arabia's young demography with major working population in the 25-54 age group draws steady salaries. With livelihood essentials adequately taken care of due to government subsidies, this income segment is positioning itself for an improved lifestyle. Rising two-income nuclear families alongside women's higher participation in the workforce are further augmenting disposable earnings. Social security benefits like housing and healthcare allowances too leave more in hands for discretionary consumer spending.

Rising living standards naturally prompt aspiration for social mobility symbols like personal vehicles treated not just as means of commutation but expression of status and leisure objects. As ownership levels of cars, SUVs, vans, pick-ups and motorbikes increase in this status-conscious society, so does the propensity to spend on high quality tires seen as an investment into the owned assets. Even used vehicle market is presenting such opportunities to tire sellers as these change hands with some component modifications often including rubber upgrade.