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Automotive

Tyre and oil change shop feasibility study

Latest regulatory change: 2026 · reviewed 2026-11-05

A shop selling, fitting and balancing tyres and changing engine oil and filters.

  • 15,139,102roadworthy vehicles in 2023[5]
  • 6 levelsrolling-resistance rating on the tyre label[1]
  • 2015start of the tyre energy-efficiency label[1]

Latest regulatory and market changes

  1. 2015The Saudi Standards, Metrology and Quality Organization (SASO) began applying the tyre energy-efficiency label, which rates rolling resistance on 6 levels and assesses wet grip.[1]
  2. 2025The draft requirements for vehicle repair workshops covered tyre and battery shops and placed oil changes in the specified-parts category.[2]
  3. 2025The Ministry of Municipalities and Housing (MoMAH) adopted the requirements, including classifying tyre and oil services as a main activity and banning the occupation of pavements.[3]
  4. 2026The ministry confirmed that workshops must have an oil interceptor to stop oil reaching the sewer, and must hand used oil to recyclers or licensed waste carriers.[4]

Why now

  • Growth in the vehicle fleet increases repeat demand for tyres and oil changes.[5]
  • The energy-efficiency label makes the tyre rating a standard buyers use to compare products.[1]

15,139,102Roadworthy vehicles in Saudi Arabia in 2023, up 6% on 2022.[5]

The idea and business model

A quick-service shop that sells, fits and balances tyres and changes engine oil and filters. Revenue comes from the margin on tyres and oil and from fitting and service charges.

Model: Site-based retail and service

Project economics

Revenue formula

Cars per day×Average invoice value×Operating days

Sales channels

  • Tyre sales and fitting
  • Oil and filter changes
  • Fleet contracts

Largest cost items

  • Tyre and oil stock
  • Site rent and fit-out
  • Technician salaries
  • Tyre changing, balancing and lifting equipment

Decisive indicators we measure

  • Cars per service bay
  • Stock turnover
  • Margin per tyre
  • Share of returning customers

Relevant authorities

  • Ministry of Municipalities and Housing (MoMAH) via Balady: licence and vehicle repair workshop requirements
  • Saudi Standards, Metrology and Quality Organization (SASO): tyre conformity and energy-efficiency label
  • Civil Defence: safety approval before licensing
  • Ministry of Commerce: Commercial Registration (CR) and consumer protection

What needs your attention

  • Disposal of used oil is now a documented obligation with recyclers or licensed carriers.
  • Tyre stock ties up capital and is affected by the production date shown on the label.
  • The ban on working on pavements requires enough space to park cars inside the shop.

What a Tyre and oil change shop study calculates for you

  • Opening stock size and turnover
  • Number of service bays and daily capacity
  • Tyre and oil mix in revenue
  • Cost of the oil interceptor and used-oil disposal
  • Cars per day needed to break even

Every one of these figures appears in your study with its source and date, built on your location and capital, with a clear line between documented facts and assumptions.

Sources

Most sources are Saudi government and press pages in Arabic; titles are kept in their original language so you can find them.

  1. بطاقة كفاءة الطاقة للإطارات في السعودية، دليل شاملدليل سيارة · 2024-09
  2. منطقة انتظار مكيفة بنوافذ زجاجية لعملاء ورش السياراتعكاظ · 2025-08
  3. «البلديات»: منع شغل الأرصفة والمرافق العامةعكاظ · 2025-12
  4. تنظيم ورش إصلاح وسائل النقل يرفع جودة الخدمة ويحسن البيئة الحضريةوزارة البلديات والإسكان · 2026-10
  5. مسببات الحوادث الانحراف أولا وترك المسافةالوطن · 2024-06

Last reviewed: 4 November 2026. This page introduces the activity; detailed figures belong in the study.