Discussion/Analysis of Automotive Industry in Saudi Arabia

        By analyzing the automobile industry  in Saudi Arabia it has found that automotive industry in Saudi Arabia it can be said that there is a huge potential of growth in the automotive industry. The vehicle manufacturing corporations can invest in Saudi Arabia because in future the sales of the vehicles will increase [8]. Toyota Corporation has dominates the sales in the country and have the highest market share. Concentration ratio near 100% indicates monopoly in the market [9].

    The concentration ratio shows whether there are large organizations working in the industry or there is huge number of small organizations. The automotive industry of Saudi Arabia is based on small number of large organizations which is the characteristic of oligopoly market [4]. The HHI of the Saudi Automotive industry is computed to evaluate the level of concentration. The following tables contain HHI of the automotive industry [1]:

        The government has implemented favorable policies for the automobile industry which makes it attractive for the investors. The whole study revolves around three main things which are product quality, service quality and the satisfaction of the customers. In order to succeed in organization it is important for the businesses to provide such services which are according to the needs of the customers [10]. Through this study one can improve the performance and efficiency of the automotive industry. The automotive sector has the potential to provide jobs to a lot of people and can help Saudi Arabia to diversify its economy. When the automobile organization experience growth it means that the automobile industry will experience an increase as well [6]

References of Automotive Industry in Saudi Arabia