Saudi women drivers to boost car sales
3M WOMEN LICENCE HOLDERS EXPECTED IN KINGDOM BY 2020
From a few thousand drivers today to as many as three million in 2020, Saudi women who hold driving licences will be making their presence felt both on the kingdom’s roads and in car dealer’s showrooms.
Yesterday, Saudi Arabia finally shed its tag of being the only country not to allow women to drive, with new licences being issued starting earlier this month.
For global carmakers and their dealerships in Saudi Arabia, the country’s new drivers represent an unprecedented opportunity to sell new cars and many see them reviving a car market that had a tough two-year run. Even if only 20 per cent or so of women drivers who begin driving this year buy new cars, that would still count for a boost, say industry sources. Anything over and above that would place the auto industry back into a high growth trajectory starting 2019, they add.
Sources indicate that more than 50,000 Saudi women may already have filed for the new licences. The Saudi government on its part is rolling out a series of initiatives to make their first rides as smooth as possible, including dedicated lanes, orientation courses and much more.
“We are at the beginning of the journey and (will) continue to learn about this customer group as their needs evolve,” said Crystal Worthem, Marketing Director, Ford Middle East and Africa.
Saudi women were in the driver’s seat for the first time in their country and steered their way through busy city streets just minutes after the world’s last remaining ban on women driving was lifted yesterday.
It’s a euphoric and historic moment for women who have had to rely on their husbands, fathers, brothers and drivers to run basic errands, get to work, visit friends or even drop kids off at school. The ban had relegated women to the back seat, unable to determine when and how to move around.
But after midnight yesterday, Saudi women finally joined women around the world in being able to get behind the wheel of a car and simply drive.
For nearly three decades, Saudi women and the men who support them have been calling for women to have the right to drive.
For Saudi women, 10/10 will hold a great significance in their full empowerment drive.
The date refers to 10 Shawwal, the tenth day of the tenth month on the Islamic calendar, corresponding to June 24.
“This 10/10 gave us Saudi women the perfect score of 10 as we can officially drive in our beloved kingdom,” Ruwa, a Saudi national living in Bahrain, said.
“I have been driving here in Bahrain without problems and I look forward to the same feelings and experiences in Saudi Arabia.”
In the Saudi capital Riyadh and elsewhere in the vast kingdom, not even waiting for daybreak yesterday, women took to the wheel in the early hours past midnight, drove straight into history books.
As the clock ticked past midnight on Saturday, scores of women drivers, armed with their new Saudi driving licences, drove along busy Tahlia thoroughfare and other streets in Riyadh, the Centre for Inter- national Communication (CIC) said.
The scenes were repeated on the streets of Jeddah and other cities across the kingdom.
“It is a mix of emotions really. I am very excited and thrilled that this day had finally come. It is truly a dream come true. I am thrilled to be finally driving in the streets of my home country,” said Salma Rashed Al Sunaid, who was among the first batch of women to receive a Saudi driving licence in Riyadh. “Over 30 years ago, my grandfather had a published news article interview stating his full support for women driving in Saudi Arabia. He would have been happy that this day is finally here, may he rest in peace.”
“This is a very important day and moment for every woman in Saudi Arabia. My feelings are indescribable, I am super happy, overjoyed, and excited to start hitting the road in my city and in my country for the first time,” said Tahani Al Dosemani, Assistant Professor and Undersecretary of the Deanship of the Technology Department at Prince Sattam Bin Abdul Aziz University in Al Kharj.
She too was among the first group of women to receive their Saudi driving licences on June 4, exchanging her US-issued driving licence for a Saudi one.
“I have all the feelings of empowerment and independence being finally behind the wheel and driving my car by myself. I also have huge feelings of gratitude and thankfulness to our King and our Crown Prince who made that happen and who are constantly working hard to provide women in Saudi Arabia with increasingly more rights through multiple decisions and changes to ensure women’s equality, inclusion, and empowerment.”
Hours earlier, Areej Al Gurg tweeted: “Buying a car for the
It is a mix of emotions really. I am very excited and thrilled that this day had finally come. It is truly a dream come true. I am thrilled to be finally driving in the streets of my home country.”
Salma Rashed Al Sunaid | Saudi resident
This is a very important day and moment for every woman in Saudi Arabia. My feelings are indescribable, I am super happy, overjoyed, and excited to start hitting the road in my city and in my country for the first time.”
Tahani Al Dosemani| Assistant professor
Buying a car for the first time will no longer be a coming of age moment for men only in Saudi Arabia. Only a few hours away, and for the first time in its history, women will be able to drive themselves legally in Saudi Arabia ...”
Areej Al Gurg | Saudi national
first time will no longer be a coming of age moment for men only in Saudi Arabia. Only a few hours away, and for the first time in its history, women will be able to drive themselves legally in Saudi Arabia at exactly midnight tonight. ”
Meanwhile, three Bahrainis made history by becoming the first women to drive across the King Fahd Causeway into Saudi Arabia. Ayesha Bahlool, Basima Al Haram and Nadia Fayez used the 25-kilometre terrestrial link between Bahrain and Saudi Arabia just after midnight when the ban on women driving was officially lifted in the Saudi kingdom.
“We wanted to be the first ones to do it, so we were at the borders right at midnight,” they said.
Under the new Saudi traffic rules, Bahraini and other Gulf women can drive into Saudi Arabia and vice versa without the need for a male companion.
Starting yesterday, change was not only showing up on roads across Saudi Arabia, it is very much evident at car dealerships and showrooms. With women finally being able to get behind the wheel, Saudi Arabia is potentially looking at a 5-10 per cent additional boost in new car sales this year.
After what has been an exceptionally difficult 12 months for automotive sales, dealerships and manufacturers will be willing to take whatever gains come their way from women driving.
Car showrooms are already wearing a festive look in anticipation of better numbers — for others, it’s as if this year’s Eid promotions haven’t concluded.
Al Jazirah Vehicles Agencies Co, the kingdom’s Ford distributor, has revamped its showroom along Riyadh’s Takhassosy road and “plans are underway to roll this out over the next months,” according to Crystal Worthem, marketing director at Ford Middle East and Africa.
“Our dealership facilities will evolve as our new female customer groups evolve. We have seen [a] pick-up in demand from female customers since the royal decree was announced. Our focus is to deliver a stressfree ownership experience to our new Saudi female customers. This would encompass their experience on the showroom floor as well as the service and maintenance solutions and — most importantly — the roadside assistance features.”
The industry is leaving nothing to chance. Some showrooms have designated entrances for women-only visitors and dedicated areas for them to cast an eye over the models and make their decisions.
Industry sources, however, add an upturn in new car sales to women drivers is likely to happen gradually in the weeks ahead and then change a gear or two in the fourth quarter of 18 when new models start making their appearance.
Immediate beneficiary
The biggest immediate beneficiary could be in the premium and luxury category, where it is reckoned that likely buyers most likely already hold non-Saudi driving licences and would want to make their presence felt as soon as they are issued a Saudi one.
A few thousand licences have been issued to women so far, with about 50,000 plus awaiting their turn.
The thinking within industry circles is that if 20-25 per cent of these drivers are induced to go in for a new car, that in itself would make for a good start. And apart from individual buyers, there could be demand from rent-a-car operators and driving schools.
Marketing consultants, however, suggest that industry players should not let their hopes get ahead of themselves.
“[The] sales impact will be positive — but this will be a slow change,” said Prashant Kolleri, managing director for Saudi Arabia and Pakistan at Kantar Insights.
“The segment size of immediate buyers of new cars may not be huge. In the medium term, the adoption of car driving will depend on [many] factors. Additionally, women’s participation in the economy through employment, entrepreneurship and them viewing car ownership as a facilitator could be an important factor.
“Given the significance of
We have seen [a] pick-up in demand from female customers since the royal decree was announced. Our focus is to deliver a stress-free ownership experience to our new Saudi female customers.” Crystal Worthem | Marketing director at Ford Middle East and Africa
The] sales impact will be positive — but this will be a slow change. The segment size of immediate buyers of new cars may not be huge. In the medium term, the adoption of car driving will depend on [many] factors.” Prashant Kolleri | Managing director for Saudi Arabia and Pakistan at Kantar Insights.
First of all, the regulations do not distinguish between ownership and intent to drive a vehicle. Title transfer processes are unnecessarily cumbersome and do not protect buyers and make sellers’ lives difficult. All cars need to pass vehicle tests before selling.” Saygin Yalcin | CEO of Sellanycar.com
change, initiatives that support confidence building, partnering women make the right choice in terms of product functionality and image will play a big role. [A] deeper understanding of women motorists’ needs will be very important for brands to be in their choice set.”
Car dealerships in the UAE, going through a third successive year of indifferent sales, will be keeping a close watch on Saudi proceedings. In particular, they
will be keen to see whether the used-car market too will benefit from the changes brought on in the kingdom.
But Saygin Yalcin, CEO of Sellanycar.com, said much still needs changing in regard to used car regulations. Saudi Arabia’s used car market is three to five times bigger than the UAE’s, but suffered a “major” hit in the past 12 months.
“First of all, the regulations do not distinguish between ownership and intent to drive a vehicle,” he said. “Title transfer processes are unnecessarily cumbersome and do not protect buyers and make sellers’ lives difficult. All cars need to pass vehicle tests before selling.
“If you cannot own a car before fixing it, it is a burden to the seller to do so before title transfer or a risk for the buyer to commit expenses before being able to legally own a car.
“The ‘mubaya’ [sales agreement] process is being misused for the above reasons. Consumers have major issues selling cars with damages or fines, as dealers cannot protect themselves before buying these cars. This means either the buyer pays for all the fines/damages [without legally owning the car] or the seller does [even though he might not have the necessary funds and even if the car’s value exceeds fixing and fine costs].”