Saudi women with ‘car keys’ a boost for Toyota

Bloomberg

The kingdom of Saudi Arabia has issued an order allowing women to drive, ending a long-standing policy.
It’s also a royal opportunity for global automakers eager to make further inroads into the Middle East’s biggest economy. Saudi Arabia’s move to open up its auto market to about half of its 32 million total population will have a profound impact on vehicle demand, driving habits and even immigration patterns in a country where low-wage immigrants from Bangladesh and the Philippines often work as hired drivers.
Market leaders such as Toyota Motor Corp. and Hyundai Motor Co., whose hulking sport utility vehicles are a fixture on Saudi roadways, may need to boost inventory of smaller models such as compacts and sedans for single working women and female students, analysts say. On the flip side, app-driven, hired driver services like Uber Technologies could experience a drop in demand, as more women buy their own cars.
Japanese automaker Toyota accounted for 32 percent of the 676,000 vehicles sold in Saudi last year, while South Korea’s Hyundai ranked second with 24 percent market share, according to Jeff Schuster, an analyst.