AutoSmart GuidebooksWhat this guidebook covers
Holding a commercial agency in Saudi Arabia comes with after-sales duties to every customer, and the Ministry of Commerce fines them one customer at a time. In August 2026 one car agency was fined SAR 8.12 million for 175 after-sales violations, had its imports suspended and saw its brand start moving to another distributor.
This guidebook covers the 5 agency standards with 15 checkpoints: spare parts supply times, replacement vehicles during delayed repairs, warranty terms, repair order periods and recall campaigns.
The 5 agency standards
Open a standard to see the law behind it, what is checked, what it can cost and the evidence. Ideal fix times are counted from audit submission.
SEC-025Spare parts availability and supply time7 days
- The law
- Commercial Agencies Law (Royal Decree M/11 of 1382H, amended by M/32 of 1400H) and its Implementing Regulations (amended 2021) · Ministry of Commerce · Penalty: Art. 4 · Implementing Regulations: continuous-demand parts permanently available, rare parts delivered within 14 days
- What we check
- Parts that customers regularly need are always in stock. Rare parts a customer orders arrive within 14 days, and every order is logged so the 14 days can be proved.
- What it can cost
- A dealership was fined SAR 50,000 for a single late part. Ten late parts a month is up to SAR 6 million a year.
- Evidence
- Stock report + parts order log extract with dates
SEC-026Replacement vehicle during delayed repairs24 hours
- The law
- Commercial Agencies Law (Royal Decree M/11 of 1382H, amended by M/32 of 1400H) and its Implementing Regulations (amended 2021) · Ministry of Commerce · Penalty: Art. 4 · Implementing Regulations (2021): substitute vehicle or compensation where parts are unavailable, or maintenance is delayed
- What we check
- When a repair is held up because a part isn't available, or runs past the completion date given to the customer, the customer gets a replacement vehicle or financial compensation, and it's recorded.
- What it can cost
- Every customer left without a car is a separate case. Twenty a month is up to SAR 1 million a month, plus the risk of an import ban.
- Evidence
- Delayed-repair list + replacement / compensation records
SEC-027Vehicle warranty terms and service72 hours
- The law
- Commercial Agencies Law (Royal Decree M/11 of 1382H, amended by M/32 of 1400H) and its Implementing Regulations (amended 2021) · Ministry of Commerce · Penalty: Art. 4 · Implementing Regulations (2021): minimum two-year warranty, extended where defects are not handled
- What we check
- Every new vehicle comes with a written warranty of at least two years and an Arabic warranty booklet and owner's guide. Warranty repairs are done free, and never refused.
- What it can cost
- Each wrongly charged or refused warranty repair is a violation, up to SAR 50,000, and the Ministry can extend your warranty obligation on top.
- Evidence
- Delivery checklists + invoice sample + refused-claims log
SEC-028Repair order completion period and documentation24 hours
- The law
- Commercial Agencies Law (Royal Decree M/11 of 1382H, amended by M/32 of 1400H) and its Implementing Regulations (amended 2021) · Ministry of Commerce · Penalty: Art. 4 · Implementing Regulations (2021): maintenance periods specified in advance, written documentation with warranty on completion · MoC consumer guidance on return of old parts
- What we check
- Before work starts, the customer is told how long the repair will take, in writing. At handover they get a completion document with the repair warranty, and their old parts.
- What it can cost
- Fines are counted per violation. One agency collected 175 of them: SAR 8.12 million, an import ban, and its brand handed to a competitor.
- Evidence
- Photos of 10 repair orders + completion documents + old-parts log
SEC-029Vehicle recall campaign handlingImmediate
- The law
- Product Safety Law (Cabinet Decision 93/1446) · Ministry of Commerce · SASO · Penalties chapter of the Product Safety Law · MoC recall campaigns published on Recalls.sa
- What we check
- Every vehicle that comes in is checked by VIN for open recalls. Owners of affected vehicles are notified and the notice recorded, and every completed recall repair is logged against the VIN.
- What it can cost
- A missed airbag recall that injures someone is no longer about SAR 50,000: the Product Safety Law allows SAR 10 million, closure for a year and up to 10 years in prison.
- Evidence
- VIN check log + notification records + recall completion report
How to run a Saudi commercial agency compliance audit, step by step
- Confirm what applies. Confirm which brands the site sells and services as an agent or authorised distributor, and which service centres sit under each agency.
- Walk the site, standard by standard. Score each of the 15 checkpoints Pass, Fail or N/A. N/A only where the standard rules it out, with the reason recorded. Pull open parts back-orders, delayed repair orders and the recall list, and check each against its time limit.
- Capture the evidence. A pass counts only with proof captured at the time of the audit: parts order dates, replacement-car records, warranty documents, dated repair orders and recall completion by VIN.
- Give every fail an owner and a fix time. Record what you saw and who owns the fix. Each standard carries an ideal fix time, from immediate to 7 days, counted from audit submission (see the table above).
- Fix it, then prove it. The site fixes the cause and uploads proof of closure; the auditor checks the proof before closing the finding.
- Re-check at the next audit. Confirm closed findings stay closed, and look for the same fail at your other sites so one gap doesn't repeat across the network.
Who this guidebook is for
- Agency principals
- After-sales directors
- Service managers
- Auditors
A reference document, not legal advice. Fines and rules change: check the current text with the regulator or your legal adviser before acting.
