Report Overview

Saudi Arabia Electric Vehicle Market is gaining significant traction owing to the growing technological advancements and increasing launches of cost-efficient electric vehicles along with the aim of the kingdom to increase energy efficiency in its transportation sector. The Saudi Arabia Electric Vehicle Market is witnessing optimistic growth owing to the affordable eco-friendly transportation, technologically advanced batteries, facility of tax exemptions, and subsidies to Electric Car consumers as well as manufacturers along with the increasing investments in the establishment of charging points across the country along with new product launches.

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

Saudi Arabia Electric Vehicle Market is expected to grow at a CAGR of 32.5% during the forecast period. The growing innovations in EV battery capacity and growing demand for commercial vehicles are driving the growth of the Saudi Arabia Electric Vehicle Market. Also, the factors like less expensive electric vehicles, expanding charging infrastructure installation, and flourishing transportation as well as the logistics industry are expected to fuel the market growth. Moreover, the Kingdom of Saudi Arabia aims to reach net-zero emissions by 2060 under the kingdom's development while maintaining the leading role in the oil & gas industry. This further offers a lucrative opportunity for the growth of the Saudi Arabia Electric Vehicle Market.

Electric Vehicle - Overview

An Electric Vehicle is an automobile that runs on energy stored in batteries. Electric vehicles are eco-friendly and have no exhaust emissions thereby, reducing the environmental pollution. Furthermore, electric cars are also considered to have low running costs due to limited components used in their production which requires low maintenance, which makes it economical.

Saudi Arabia Electric Vehicle Market Forecast and Trends

Growth Drivers

Rising Production and Adoption of Electric Vehicles

Saudi Arabia is setting up its first electric vehicle manufacturing plant in the country with Lucid. The government has planned to ensure 30% of all vehicles in the capital city. Lucid has announced plans to invest in developing the advanced electric vehicle manufacturing industry to address the growing demand for electric vehicles. Also, National Industrial Development Center (NIDC) aims to attract substantial original equipment manufacturers in Saudi Arabia to boost the production and sales of electric vehicles in the country.

Favorable Government Initiatives

The government of Saudi Arabia is taking various initiatives to boost the adoption of electric vehicles. According to a report Saudi Arabia has signed a memorandum of understanding ( MOU) with the United Kingdom to reduce carbon emissions and support sustainable energy sources to achieve the targets set by Saudi Vision 2030. Also, the setting up of a new plant is expected to create numerous job opportunities and support the skill development of people. All these factors propel the growth of the Saudi Arabia Electric Vehicle Market during the forecast period (2022-2028).

Restraints

Absence of Infrastructure Required by EVs

Although the government of Saudi Arabia is significantly taking the initiative to promote Electric Vehicles around the country. But it is yet to be seen the developed infrastructure needed for electric vehicles. Such as electric vehicle charging infrastructure and smart energy management for effective EV. In addition, Saudi Arabia subsidies fuel prices which remain generally low. Thus, it would be necessary to implement incentives for the deployment of EVs in the country, to achieve a certain level of competitiveness.

Impact of COVID-19 on Saudi Arabia Electric Vehicle Market

The Saudi Arabia Electric Vehicle Market was negatively impacted by the unprecedented COVID-19 pandemic outbreak. The complete lockdown imposed by the Saudi Arabian government affected all the industries in the market. The social distancing norms, limited labor staff, and shutdown of manufacturing processes slowed down the electric vehicles market in the country. This resulted in huge losses to the overall market. Furthermore, the declining disposable income of consumers and halting of charging point infrastructure establishing activities also hindered the growth of the Saudi Arabia Electric Vehicle Market.

Saudi Arabia Electric Vehicle Market - By Drive Type

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

Saudi Arabia Electric Vehicle Market - By Vehicle Type

Based on vehicle type, the Saudi Arabia Electric Vehicle Market is segmented into Passenger Vehicles and Commercial Vehicles. The commercial vehicle segment holds the largest market share owing to the increasing use of commercial vehicles in the logistics and transportation sectors. Also, the flourishing small and medium-sized enterprises are generating huge demand for commercial vehicles in the country.  

Saudi Arabia Electric Vehicle Market - Regional Insights

Geographically, the Saudi Arabia Electric Vehicle Market is segmented into Northern and Central, Southern, Eastern, and Western. The Northern and Central region is expected to dominate the Saudi Arabia Electric Vehicle Market. As Saudi Arabia is aiming to have 30% of electric cars in its capital Riyadh. Further, supporting the growth of the Saudi Arabia Electric Vehicle Market during the forecast period (2022-2028). 

Competitive Landscape

The leading market players in the Saudi Arabia Electric Vehicle Market are Tesla Motors Inc, Volkswagen AG, Toyota Motor Corporation, Nissan Motor Co. Ltd, Geely, Honda Motor Company Ltd, General Motors Group, Hyundai Kia Automotive Group, and other prominent players.

The market is highly consolidated and dominated by multinational car manufacturers including Tesla Motors Inc, Volkswagen AG, Toyota Motor Corporation, etc. 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 Drive Type

• Plug-in Hybrid
• Pure Electric

By Vehicle Type

• Passenger Vehicle
• Commercial Vehicle

By Region

• Northern and Central
• Southern
• Eastern
• Western