While the retail market has been surrounded by controversy over pricing issues, the effects of the global downturn have been felt hardest in the heavy vehicle industry. As financing has been cut for the Kingdom’s mega projects and construction plans, so too has the demand for trucks and lorries. “The credit issues have affected us markedly,” says one dealer who asked not to be named. “The large financial institutions that used to finance projects in the Middle East have reduced their appetites as credit is tight. That has affected the projects we depend on, which has resulted in a downturn in the trucking business.”

The feeling among the car dealers is that they’ve become a target for consumers unhappy with price increases and inflation in general. They believe  the government should step in to support them publicly. “We were unfortunate that some government officials did not clarify that this is an open market, to consumer groups who were complaining,” says another anonymous car dealer. “They should say that car distributors are not charging over and above what they should do, and that they pass their prices on to the customer. Car dealers deal on a competitive basis and pass on that to the customer. Whatever rebate we get we pass on. It’s that simple.”

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