Report Overview

Saudi Arabia Electric Cars Market is gaining significant traction because the electric car is extremely efficient, utilizing 90-95 percent of the input energy to propel the car forward and emitting zero pollutants...

Saudi Arabia Electric Cars Market - Industry Trends & Forecast Report 2028

Saudi Arabia Electric Cars Market is expected to grow at a CAGR of 35.8% during the forecast period (2022-2028). The market is flourishing at a high rate owing to the increasing launches of new eco-friendly electric cars along with the growing government initiatives to encourage consumers to shift toward Green Mobility. Also, the rising purchasing power of consumers and removal of the ban on women driving are expected to drive the demand for electric cars across the country. Moreover, expanding innovations in EV battery capacity and growing demand for passenger and commercial cars are driving the growth of the Saudi Arabia Electric Cars Market during the forecast period (2022-2028).

Electric Car - Overview

Electric Car is an automobile that is incorporated by one or more electric motors, using energy stored batteries. The electric car is quieter, has no exhaust emission, and does not require internal combustion engines to operate. Also, the electric car is considered to be very eco-friendly as they use little or no fossil fuels such as petrol, diesel, etc. 

Saudi Arabia Electric Cars Market Forecast and Trends

Growth Drivers

Saudi Arabia’s Environmental Sustainability Strategy

The Kingdom of Saudi Arabia (KSA) has adopted a new law and policy framework, Vision 2030, designed to deliver a transition to a diversified and low-carbon economy. This results in driving the demand for electric cars in the country. Additionally, in March 2021, Crown Prince Mohammed bin Salman launched the Saudi Green Initiative. Also, the growing focus of the Saudi Arabian government to promote the use of electric cars to diversify its fleet to be more eco-friendly is bolstering the market growth. Moreover, increased awareness about energy storage solutions in the renewable-based power sector is further propelling the growth of the Saudi Arabia Electric Cars Market during the forecast period (2022-2028).

Increasing Electric Cars Manufacturing Plant in the Country

Saudi Arabia is steadily taking action to start the manufacture of Electric Cars in the country. It has signed an agreement with Lucid Motors to purchase a minimum of 50,000 electric vehicles and potentially up to 100,000 Lucid vehicles including various electric cars over ten years. Lucid is on the way to establishing its first factory in Saudi Arabia. In addition, the Lucid factory will produce four different types of electric cars starting in 2023, and it will reach its full capacity in 2028. This aids to drive the market growth and helps Saudi Arabia realize its ambition to be a major regional as well as global manufacturing base in the future. All these factors boost the demand for electric cars across Saudi Arabia.

Restraints

High-Costs associated with Electric Cars

Although electric cars are superior and eco-friendly as compared to traditional fuel cars but, the cost of electric cars is higher than gasoline cars. Small-sized electric car price range is triple compared to small-size gasoline cars. This results in a rise in concern among price-sensitive consumers. Also, the lack of electric car availability in the market and the absence of ev charging infrastructure is hindering the market growth. Thus, it would be necessary to implement charging points at all places to increase buying rate of electric cars in the country, to achieve a certain level of profit in the Saudi Arabia Electric Cars Market.  

Impact of COVID-19 on Saudi Arabia Electric Cars Market

The sudden outbreak COVID-19 pandemic negatively impacted the growth of the Saudi Arabia Electric Cars Market. The complete lockdown imposed by the Saudi Arabian government affected all the sectors across the country, social distancing norms, and limited labor staff. This declines the demand and growth of the Saudi Arabia Electric Car Market. Furthermore, the declining disposable income of consumers and many people staying at home hindered the growth of the Saudi Arabia Electric Car Market during the pandemic.

Saudi Arabia Electric Vehicle Market - By Propulsion Type

Based on the propulsion type, the Saudi Arabia Electric Cars Market is segmented into Battery Electric Vehicle, Hybrid Electric Vehicle, Plug-in Hybrid Electric Vehicle, and Fuel-cell Electric Vehicle. The plug-in hybrid electric vehicle accounts for the largest share in the Saudi Arabia Electric Cars Market due to the limited presence of charging infrastructure in Saudi Arabia. Thus, most electric car owners opt for this propulsion technology to run on both batteries as well as conventional fuel. Moreover, the pure electric hybrid electric vehicle segment is expected to dominate the market during the forecast period (2022-2028).

Saudi Arabia Electric Vehicle Market - By Battery Type

Based on battery type, the Saudi Arabia Electric Cars Market is segmented into Lithium-Iron Phosphate, Lithium-Nickel-Manganese Cobalt oxide, and Other Li-ion battery types. The Lithium-Iron Phosphate segment holds the largest market share because it is a type of Li-ion battery. Li-ion batteries are rechargeable batteries and have a higher energy density than typical lead-acid or nickel-cadmium batteries.

Competitive Landscape

The leading market players in the Saudi Arabia Electric Cars Market are Higher Bus Company Ltd., Anhui Ankai Automotive Co, Ltd., Daimler AG, AB Volvo, Tesla, Lucid Group, Inc., General Motors Company, and others.

The market is highly consolidated and dominated by multinational car manufacturers including Tesla Motors Inc. However, with increasing demand for electric vehicles, several EV startups are also emerging with significant growth potential in the market. The companies constantly launch new vehicle models and their upgraded versions with advanced features to attract buyers and gain a competitive edge. They also adopt competitive strategies such as partnerships, mergers, acquisitions, joint ventures, etc., to stay ahead in the market.

Recent Development

• RIYADH: The Government of Saudi Arabia announced that it has signed an agreement with Lucid Motors to purchase a minimum of 50,000 electric vehicles and up to 100,000 electric vehicles over ten years to diversify its fleet to be more eco-friendly.

Scope of the Report

By Propulsion Type

• Battery Electric Vehicle
• Hybrid Electric Vehicle
• Plug-in Hybrid Electric Vehicle
• Fuel-cell Electric Vehicle

By Battery Type

• Lithium-Iron Phosphate
• Lithium-Nickel-Manganese Cobalt oxide
• Other Li-ion battery types