Is it time for MENA’s car retail industry to finally shift online?

Is it time for MENA’s car retail industry to finally shift online?

DUBAI | Ahmed GabrGlobal car sales were forecast to shrink by 9.4% by the end of 2020. Many factors have contributed to this slide, including the COVID-19 pandemic and the subsequent decline in consumer purchasing power, plus weaker economies, a reduced need for transportation, and crashing oil prices.The automotive market in MENA has naturally been equally impacted. For example, Saudi Arabia - which used to have one of the world's fastest-growing motor industries between 2010 and 2015, had a harsh time in 2020. Between March and June, new car sales in Saudi Arabia decreased by 60%, and visits to showrooms dropped by 80%. This has had serious repercussions for the service and aftermarket sectors, with the average spend per vehicle declining by 25%, periodic maintenance plunging by 75% and spare parts sales slumping by 70%.With the need to digitise being more important than ever - is it finally time for the region's car retail industry to shift online?It's certainly something to think about; looking at other markets, online tools have come to the rescue of ailing auto dealers. In the United States, where car sales are estimated at $840 billion, online transactions still account for only around 1% of the