Car sales in Saudi Arabia increased by 6. 9% in the first part of 2020, compared to the same time in 2019, despite the global COVID-19 pandemic, according to the Focus2Move automotive knowledge research online page.
Of approximately 232,000 sales in the first part of 2019, marked as a wonderful year for the automotive industry in Saudi Arabia due to a real driving decree, car sales in the first part of 2020 increased to 247799.
On 11 May, the General Authority of Zakat and Taxation of Saudi Arabia announced an increase in price added tax (VAT) from 5% to 15% on all goods and from 1 June.
The movement component of measures taken through the Saudi government to maintain the Kingdom’s economy and help it succeed over the coronavirus pandemic and its monetary and economic effects, according to the Saudi Press Agency (SPA).
According to Focus2Move, the coronavirus pandemic slowed the automotive industry when the automotive market remained solid at -0. 2% in March due to business blockages and closures.
However, the reopening of the Kingdom around April and the purchase of groceries in May, driven by the announcement of the increase in VAT, allowed the market to be at higher levels than last year.
In a regional rating through the automotive knowledge research website, Focus2Move reported that the two countries in the Middle East and North Africa region that saw an increase in car sales in the first part of 2020 were Saudi Arabia and Egypt.