Saudi Arabia Electric Vehicle Market Report, Size, Share, Opportunities, and Trends Segmented By Vehicle Type, Propulsion Type, Drive Type, Component, and End User – Forecasts from 2025 to 2030

Description

Saudi Arabia Electric Vehicle Market Size:

The Saudi Arabia Electric Vehicle Market is expected to witness robust growth over the forecast period.

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The Saudi Arabian Electric Vehicle (EV) market is currently in an aggressive foundation-building phase, catalyzed by strategic government intervention under the Saudi Vision 2030 framework. This transition is not a gradual, consumer-led shift, but a systemic, top-down industrial imperative designed to diversify the hydrocarbon-reliant economy, localize advanced manufacturing, and achieve ambitious sustainability targets, such as the Saudi Green Initiative. The market’s trajectory is therefore defined less by organic consumer adoption rates and more by the speed and scale of state-backed infrastructure and manufacturing investments, positioning the Kingdom as a future regional hub for electric mobility.

Saudi Arabia Electric Vehicle Market Analysis

• Growth Drivers

The primary growth driver is the sovereign-led industrial mandate, which creates direct, immediate demand through procurement guarantees. The Saudi government's agreement to purchase up to 100,000 Lucid electric vehicles over ten years provides a guaranteed demand floor for a key local manufacturer, ensuring long-term operational viability and scale. This large-volume commitment accelerates necessity by securing a foundation for localized supply chain development. Furthermore, the National Transport and Logistics Strategy targets increasing the share of advanced vehicles in public fleets, directly increasing procurement demand in the commercial vehicle segment, particularly for public transport buses and logistics fleets.

• Challenges and Opportunities

A primary challenge is the nascent state of public charging infrastructure outside of major metropolitan areas like Riyadh and Jeddah, which creates significant range anxiety, a constraint that directly suppresses individual private consumer demand for Battery Electric Vehicles (BEVs). The opportunity, conversely, lies in the Public Investment Fund's dedicated capital allocation for the automotive ecosystem, which includes the establishment of EVIQ to deploy 5,000 fast chargers. This direct, centralized investment structure bypasses common grid modernization and permitting complexities, directly removing the main barrier to widespread consumer and commercial demand.

• Raw Material and Pricing Analysis

The electric vehicle is a physical product, making raw materials and pricing dynamics critical. Key to the global EV supply chain is the lithium-ion battery. Saudi Arabia is currently dependent on imports for a significant portion of the cell and pack components required for domestic vehicle assembly. This import dependency exposes local OEMs, like Lucid and future Ceer production, to global commodity price volatility for materials such as lithium, cobalt, and nickel. While PIF has announced a $6 billion investment toward a steel complex and EV battery metals plant to localize the supply chain, current vehicle pricing remains tied to international material costs and import duties on semi-knocked-down (SKD) kits, which can constrain competitive pricing and limit mass-market production until full local production (CBU) is achieved.

• Supply Chain Analysis

The global EV supply chain is geographically concentrated, with key production hubs in East Asia (battery cells and components) and Europe/North America (advanced vehicle platforms and software). Saudi Arabia's local supply chain is strategically designed to mitigate this dependency. The current supply model relies on 'kit' imports for initial assembly at facilities like Lucid's AMP-2. The long-term vision focuses on localizing Tier-1 suppliers within specialized industrial zones, such as the King Salman Automotive Cluster within KAEC. Logistical complexities stem from the hot, arid environment, which requires specialized battery thermal management systems and robust cooling in the vehicle component supply chain to ensure performance, a factor that influences design and material specifications for local assembly.

Saudi Arabia Electric Vehicle Market Government Regulations:

Saudi Arabia Electric Vehicle Market Segment Analysis

• By Vehicle Type: Passenger Vehicle

The Passenger Vehicle segment represents the core of initial growth, driven by increasing per capita income and a technology-forward consumer base, particularly in urban centres. The market is primarily stimulated by two factors: the introduction of premium, high-tech models by PIF-backed and globally recognized brands (e.g., Lucid Air), which appeal to the high-net-worth segment, and direct government incentives. Financial mechanisms such as subsidies covering up to 50% of licensing fees and road tax exemptions reduce the total cost of ownership, directly increasing the addressable market and translating latent consumer interest into immediate purchase demand, particularly for early adopters seeking luxury and performance. Furthermore, the integration of advanced features like Advanced Driver Assistance Systems (ADAS) is a significant pull factor for Saudi consumers, accelerating demand for new models.

• By End User: Public

The Public sector is the foundational demand engine, operating on state mandates rather than market forces. The explicit Vision 2030 target for the electrification of government and municipal fleets drives committed, large-volume demand for commercial vehicles (buses, utility vans) and passenger vehicles for public services. The government’s role as an anchor customer, exemplified by the commitment to procure up to 100,000 Lucid vehicles, validates the local manufacturing ecosystem and de-risks private sector investment in charging and maintenance infrastructure. The deployment of electric buses in major cities is a key growth channel, establishing a visible, high-utilization fleet that normalizes EV technology for the general populace while directly supporting the national sustainability agenda.

Saudi Arabia Electric Vehicle Market Competitive Analysis:

The Saudi EV competitive landscape is uniquely characterized by a duality: PIF-backed domestic champions versus international importers. The sovereign wealth fund is actively restructuring the market to favour local production.

• Lucid Group

Strategic Positioning: Positioned as the Kingdom's luxury EV flagship and first domestic manufacturer. The strategic partnership with PIF, which holds a majority stake, underwrites its local operation.

Key Products/Services: The Lucid Air, a premium sedan. The company commenced initial assembly operations (SKD) at its Advanced Manufacturing Plant (AMP-2) in KAEC in September 2023, with an expected annual capacity of 5,000 units in the first phase, and an eventual goal of 155,000 vehicles annually. This facility is crucial for fulfilling the government's order for up to 100,000 vehicles.

• Ceer

Strategic Positioning: Established in 2022 as Saudi Arabia’s first national EV brand, a joint venture between PIF and Foxconn. The company uses licensed component technology from BMW, blending international technological expertise with local capital.

Key Products/Services: Ceer is developing a range of sedans and Sport Utility Vehicles (SUVs) for the Saudi and MENA markets, with an assembly complex designed for an annual capacity of 240,000 units. Its business model is fundamentally demand-focused: to replace imported vehicles with domestically manufactured alternatives.

Saudi Arabia Electric Vehicle Market Developments:

• September 2023: Lucid Group Opens AMP-2 Facility

Lucid Group officially opened its Advanced Manufacturing Plant (AMP-2) in King Abdullah Economic City (KAEC), marking the Kingdom’s first-ever car manufacturing facility. The initial phase focused on semi-knockdown (SKD) assembly of the Lucid Air, establishing a foundational capacity of 5,000 vehicles per annum for the local market.

Saudi Arabia Electric Vehicle Market Scope:

Saudi Arabia Electric Vehicle Market Segmentation:

BY VEHICLE TYPE

• Passenger Vehicle
• Commercial Vehicle
• Others

BY PROPULSION TYPE

• Battery Electric Vehicle (BEV)
• Hybrid Electric Vehicle (HEV)
• Plug-in Hybrid Electric Vehicle (PHEV)
• Fuel Cell Electric Vehicle (FCEV)

BY DRIVE TYPE

• Front Wheel Drive
• Rear Wheel Drive
• All Wheel Drive

BY COMPONENT

• Battery Cells & Packs
• Onboard Chargers & Motor
• Brake, Wheel & Suspension
• Others

BY END USER

• Public
• Private
• Commercial

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Table Of Contents

1. EXECUTIVE SUMMARY 

2. MARKET SNAPSHOT

2.1. Market Overview

2.2. Market Definition

2.3. Scope of the Study

2.4. Market Segmentation

3. BUSINESS LANDSCAPE 

3.1. Market Drivers

3.2. Market Restraints

3.3. Market Opportunities 

3.4. Porter’s Five Forces Analysis

3.5. Industry Value Chain Analysis

3.6. Policies and Regulations 

3.7. Strategic Recommendations 

4. TECHNOLOGICAL OUTLOOK 

5. SAUDI ARABIA ELECTRIC VEHICLE MARKET BY VEHICLE TYPE  

5.1. Introduction

5.2. Passenger Vehicle

5.3. Commercial Vehicle

5.4. Others

6. SAUDI ARABIA ELECTRIC VEHICLE MARKET BY PROPULSION TYPE  

6.1. Introduction

6.2. Battery Electric Vehicle (BEV)

6.3. Hybrid Electric Vehicle (HEV)

6.4. Plug-in Hybrid Electric Vehicle (PHEV)

6.5. Fuel Cell Electric Vehicle (FCEV)

7. SAUDI ARABIA ELECTRIC VEHICLE MARKET BY DRIVE TYPE  

7.1. Introduction

7.2. Front Wheel Drive

7.3. Rear Wheel Drive

7.4. All Wheel Drive

8. SAUDI ARABIA ELECTRIC VEHICLE MARKET BY COMPONENT

8.1. Introduction

8.2. Battery Cells & Packs

8.3. Onboard Chargers & Motor

8.4. Brake, Wheel & Suspension

8.5. Others

9. SAUDI ARABIA ELECTRIC VEHICLE MARKET BY END USER  

9.1. Introduction

9.2. Public

9.3. Private

9.4. Commercial

10. COMPETITIVE ENVIRONMENT AND ANALYSIS

10.1. Major Players and Strategy Analysis

10.2. Market Share Analysis

10.3. Mergers, Acquisitions, Agreements, and Collaborations

10.4. Competitive Dashboard

11. COMPANY PROFILES

11.1. SAIC Motors 

11.2. Lucid Motors 

11.3. Mercedes-Benz

11.4. Toyota Motor Corporation 

11.5. BYD 

11.6. Volvo Car Corporation 

11.7. Tesla 

11.8. Volkswagen 

11.9. Renault Group

11.10. BMW 

12. APPENDIX

12.1. Currency 

12.2. Assumptions

12.3. Base and Forecast Years Timeline

12.4. Key benefits for the stakeholders

12.5. Research Methodology 

12.6. Abbreviations 

Companies Profiled

SAIC Motors 

Lucid Motors 

Mercedes-Benz

Toyota Motor Corporation 

BYD 

Volvo Car Corporation 

Tesla 

Volkswagen 

Renault Group

BMW 

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