Saudi car dealers hike spare part prices by 35%

SPARE PARTS: The cost of spare parts has risen by one third in Saudi as a result of the economic slowdown. (Getty images)

Car dealers in Saudi Arabia have hiked the price of spare parts by up to one third, to compensate for the shortfall in sales, as a result of the economic slowdown, it was reported on Monday.

In some cases the price has risen by 35 percent, according to industry insiders, who claim the spare parts business is one of the fastest growing sectors in the Kingdom.

“Frequently changed parts like batteries, oil and air filters, and brake pads have gone up in price enormously. Batteries have shot up from SR95 to SR180,” said one dealer in an interview with Saudi daily Saudi Gazette.

Motorist Bandar Majally, who was having his car repaired at a mechanic’s in the Industrial City in Jeddah, added: “The price differences are unbelievable. In one shop you can find brake pads for SR150 and right next door another shop will be selling the same brand for SR60.”

“The only explanation is that greedy traders play around with the prices.”

The situation was being exacerbated by high exchange rates between the riyal and other currencies such as the yen and the euro, car dealers said, as well as increased opertional costs. 

Saleh Al Qaidi, the manager of a spare parts agency in Jeddah added: “Car agencies see the price as necessary due to the increase in operational costs. Freight fees have doubled. External factors aside, domestic influences such as the rise in the cost of living have also played a role.”

“The type of spare part, its size and model, and the size of demand, govern the price of the part,” said Saeed Abdul Gader, a spare parts dealer in Jeddah.

“Another factor is the competition between dealers. Some might have stock from a time when the exchange rates were better, and can therefore sell cheaper.”

However, the issue had now beomce a public safety concern, amid fears that lower income groups could be forced to buy cheaper, imitation parts, motorists said.

Authorities needed to bring in regulations to force car dealers to openly list their prices, they added.
 
“The price rise should be halted immediately to prevent consumers resorting to fake and secondhand parts which could endanger lives,” motorist Nasser Al-Harbi warned.

“The Ministry of Trade and Industry and the Consumer Protection Society should monitor the market to protect consumers and break the price-fixing of spare parts by traders and car dealers,” he added.

However, Kamal Al Aittani, head of Car Maintenance Committee at Jeddah’s Chamber of Commerce and Industry, said the authorities had no control over prices.

“Neither the Ministry of Trade and Industry nor the Consumer Protection Society has any power over prices because there is no government mechanism governing this.”

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