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Download PDFMarket Overview
The Saudi Arabia electric vehicle market generated USD 2,343.7 million in revenue in 2024. The market is projected to expand to USD 15,821.7 million by 2030, reflecting a compound annual growth rate (CAGR) of approximately 37.5% for the period 2025–2030. It is driven by large-scale public and private investments supporting charging infrastructure, fleet electrification mandates (e.g., target of 30% EV adoption in Riyadh under Vision 2030), and commitments from PIF‑backed OEMs like Lucid and Ceer to local vehicle production
Riyadh and Eastern Province dominate the EV market due to their strategic importance—they house major infrastructure corridors and industrial clusters. Riyadh benefits from concentrated investment in charging networks and fleet initiatives, while Eastern Province is emerging strong due to its role in battery and component assembly infrastructure.
Market Segmentation
By Vehicle Type
The Saudi Arabia EV market is segmented by vehicle type into passenger cars and commercial vehicles. Passenger cars currently dominate the market share in 2024, controlling approximately 77.53% of revenue, driven by growing consumer demand for eco‑friendly personal mobility solutions and expanding model availability from OEMs like Lucid, Tesla, BYD, and Ceer. Urban buyers favor SUVs and sedans with competitive range and performance, while the rising affordability of financing and expanding charger coverage in cities further favor passenger car adoption. In contrast, commercial vehicles are growing at a faster pace but remain behind—fleet electrification in logistics and urban transit is gaining traction, though starting from a much smaller base.
By Powertrain Type
The Saudi Arabia EV market is segmented into BEVs and FCEVs. BEVs dominate with approximately 53.02% share of the market in 2024, thanks to mature battery technology and growing infrastructure for fast charging. Their dominance stems from cost advantages, established charging networks, and consumer familiarity. FCEVs, while currently comprising the remainder (~46.98%), are poised for the fastest growth—propelled by the Kingdom’s interest in green hydrogen and fuel-cell manufacturing under Vision 2030, which allows FCEVs to capitalize on government‑led infrastructure and industrial policy support.
Competitive Landscape
The KSA electric vehicle market is consolidated among a handful of key players, including both global OEMs and homegrown brands. Their dominance underlines the importance of strategic partnerships, local assembly, and infrastructure alignment within Vision 2030’s sustainability and localization goals.
| Company | Estab. Year | Headquarters | Local Assembly | Charging Capability (DC kW) | Battery Chemistry Focus | ADAS/OTA Capability | Fleet Agreements |
| Lucid Group | – | USA, plant in KSA | – | – | – | – | – |
| Ceer Motors | 2022 | Saudi Arabia | – | – | – | – | – |
| Tesla | – | USA | – | – | – | – | – |
| BYD | – | China | – | – | – | – | – |
| Hyundai-KIA (via PIF JV) | – | South Korea | – | – | – | – | – |
KSA Electric Vehicle Market Analysis
Growth Drivers
National Sustainability Strategy and Emission Targets
Saudi Arabia’s push toward renewable energy is reshaping sectors like transportation. Electricity generation capacity aims to rise from around 83 GW in 2023 to 110 GW by 2028—a $293 billion investment in conventional and renewable power under the energy transition plan. This substantial power build-out supports EV adoption by ensuring a growing, stable energy supply. Real GDP rose by 1.3 % in 2024, driven by a 4.3 % increase in non-oil activities—including electricity, gas, and water services which expanded by 4.9 %. Such energy-sector resilience and diversification underpin electrified mobility’s viability through policy-backed infrastructure.
PIF and Government Investments in EV Ecosystem
The Public Investment Fund (PIF) anchors the Kingdom’s EV ecosystem development. PIF’s sovereign wealth holdings exceed $700 billion and are channeling investments into NEOM, mobility infrastructures, and electric vehicle ventures. These macroeconomic indicators show robust government spending capacity. With low public debt at around 26 % of GDP, and ongoing Vision 2030 structural reforms, the state is financially positioned to fund EV manufacturing plants, charging infrastructure, and supporting green transport initiatives.
Market Challenges
Thermal Impact on EV Range in High Ambient Temperatures
Saudi Arabia’s extreme heat poses a real technical challenge for EV range and battery efficiency. Tesla’s market entry discussions cited desert temperatures exceeding 50 °C, which significantly degrade battery performance—particularly along a 900 km stretch between Riyadh and Mecca with zero charging points. Although national electricity generation capacity is expanding, ambient heat raises operational concerns—charging infrastructure, though growing, may not offset thermal derating in harsh climates. This environmental reality necessitates advanced thermal systems, adding complexity for OEMs and users.
Limited Public Fast Charging Availability
Despite rapid infrastructure growth, charging remains sparse. In 2024, Saudi Arabia had only 101 EV charging stations countrywide—far fewer than neighboring UAE’s 261 despite its third of the population size. As of end‑2023, 285 public charging points existed, with over 65 % being slow AC chargers (≤ 22 kW), limiting fast-charging adoption. This shortage curtails long-distance EV travel reliability, hampers consumer confidence, and challenges mass adoption in remote or intercity corridors.
Opportunities
Integration of EVs in Government and Public Transport Fleets
Saudi government activities increased by 2.6 % in 2024, contributing to growth in non-oil GDP (4.3 %) and signaling robust public sector engagement. This strong governmental investment base is ripe for deploying EV fleets in public transportation, municipal services, and utilities. Additionally, the “Saudi Green Initiative” has seen planting of 43.9 million trees, reflecting the state’s environmental commitment. Such policy alignment opens opportunities for public adoption of EVs as aspirational models and demonstrators, accelerating market visibility and normalization of electric mobility across the Kingdom.
Localization of EV Manufacturing & Battery Assembly
Saudi Vision 2030’s “Made in Saudi” initiative launched in March 2021 aims to increase the non-oil domestic sector’s GDP contribution from 16 % toward a higher share by 2030. The Lucid EV plant in Jeddah with 150,000‑vehicle capacity illustrates early progress toward localized EV manufacturing. Furthermore, solar renewable projects like the 1.5 GW Sudair PV plant demonstrate workforce and industrial skills localization (1,200 construction jobs and 120 permanent operational jobs). These macro-scale infrastructure and industry-building trends reflect strong potential for co-locating EV component manufacturing and battery assembly in KSA, aligning industrial development with mobility objectives.
Future Outlook
Over the next five years, the Saudi Arabia electric vehicle market is expected to sustain its robust trajectory, fueled by continued government backing, Vision 2030 industrial strategies, and surging consumer and fleet demand. Local manufacturing scale-up and extensive infrastructure investments will improve affordability and usability. FCEVs may gain ground, supported by green hydrogen developments, while BEVs remain the volume workhorse thanks to maturing technology and expanding fast‑charging networks. Overall, the EV market is set to shift from niche adoption to a mainstream mobility paradigm across both consumer and commercial segments.
Major Players
- Lucid Group
- Ceer Motors
- Tesla
- BYD
- Hyundai (via PIF JV)
- Kia (via PIF JV)
- Mercedes‑Benz (EQ models)
- BMW (i series)
- Audi (e‑tron family)
- Porsche (Taycan)
- MG Motor (SAIC)
- Geely / Zeekr
- Nissan (Leaf/ARiYA)
- EVIQ (Infrastructure)
- Electromin (Infrastructure)
Key Target Audience
- Investment & Venture Capitalist Firms
- Government & Regulatory Bodies (e.g., Public Investment Fund, Ministry of Energy, Saudi Standards Organization)
- OEM Strategy and Corporate Development Teams
- Infrastructure & Charging Operators
- Automotive OEM Supply‑Chain Investors
- Fleet Operators & Logistics Corporates
- Utilities & Energy Providers pursuing EV integration
- Real Estate and Urban Mobility Planners
Research Methodology
Step 1: Identification of Key Variables
The initial phase involves mapping the EV ecosystem in KSA—covering OEMs, infrastructure players, policy agencies, and consumers. We combined secondary sources (market reports, government data) with proprietary databases to isolate the critical variables influencing EV demand and supply in the Kingdom.
Step 2: Market Analysis and Construction
We compiled historical revenue data and vehicle registration records to quantify the market size. We assessed service infrastructure density (charging points) and fleet deployment trends to validate our bottom‑up revenue models.
Step 3: Hypothesis Validation and Expert Consultation
Our projections and structural insights were benchmarked through interviews with stakeholders across OEMs, charging operators, government agencies, and fleet managers. These conversations provided operational context that refined our quantitative assumptions.
Step 4: Research Synthesis and Final Output
Finally, we engaged directly with Jeddah assembly plant managers (e.g., Lucid, Ceer JV), EVIQ infrastructure executives, and Ministry of Energy policy officers to verify model outputs and future scenarios. This ensures a thoroughly validated and actionable report.
- Executive Summary
- Research Methodology (Market Definitions and Assumptions, Abbreviations, Market Sizing Approach, Consolidated Research Approach, Understanding Market Potential Through In-Depth Industry Interviews, Primary Research Approach, Limitations and Future Conclusions)
- Definition and Scope
- Overview Genesis
- Timeline of Major Players
- Business Cycle
- Supply Chain and Value Chain Analysis
- Growth Drivers
National Sustainability Strategy and Emission Targets
PIF and Government Investments in EV Ecosystem
Expansion of Charging Infrastructure
Increasing Private Fleet Electrification Demand
Entry of International and Local OEMs - Market Challenges
Thermal Impact on EV Range in High Ambient Temperatures
Limited Public Fast Charging Availability
Import Dependency for Key Components
Inadequate Aftersales and Trained Workforce - Opportunities
Integration of EVs in Government and Public Transport Fleets
Localization of EV Manufacturing & Battery Assembly - Trends
Rise in OTA-Enabled and Software-Defined EVs
Preference for Long-Range and Fast-Charging Vehicles - Government Regulation
SASO Technical Regulations for EVs and Chargers
EV Import Standards and Certification - SWOT Analysis
- Stake Ecosystem
- Porter’s Five Forces
- By Value, 2019-2024
- By Volume, 2019-2024
- By Average Price, 2019-2024
- By Vehicle Type (In Value %)
Hatchback
Sedan
SUV/Crossover
Pickup
Bus/Coach - By Powertrain Type (In Value %)
Battery Electric Vehicle (BEV)
Plug-in Hybrid Electric Vehicle (PHEV)
Fuel Cell Electric Vehicle (FCEV)
Electric Light Commercial Vehicle (E-LCV)
Electric Bus - By Price Band (In Value %)
Below SAR 150,000
SAR 150,000 – 250,000
SAR 250,000 – 350,000
Above SAR 350,000 - By Charging Type (In Value %)
Home AC
Workplace AC
Public AC
Public DC (50–99 kW)
Public DC (100–149 kW)
Public DC (Above 150 kW) - By Region (In Value %)
Central Region (Riyadh)
Western Region (Jeddah, Makkah)
Eastern Region (Dammam, Khobar, Dhahran)
Northern Region (NEOM, Tabuk)
Southern Region (Abha, Jizan)
- Market Share of Major Players on the Basis of Value/Volume
Market Share of Major Players by Vehicle Type Segment - Cross Comparison Parameters (Company Overview, Business Strategies, Recent Developments, Strength, Weakness, Thermal Range Handling (°C), Battery Chemistry Used, DC Fast Charging Capability, WLTP Certified Range, Charging Network Integration, Aftersales Service Points, Number of Authorized Dealers, Production/Assembly Status in KSA, Unique Value Proposition, OTA/ADAS Capabilities)
- SWOT Analysis of Major Players
- Pricing Analysis Basis SKUs for Major Players in KSA Electric Vehicle Market
- Detailed Profiles of Major Companies
Lucid Group
Tesla
Ceer
BYD
Kia
Hyundai
Mercedes-Benz
BMW Group
Audi
Porsche
MG Motor
Nissan
Geely/Zeekr
EVIQ (Infrastructure Provider)
Electromin (Infrastructure Provider)
- Market Demand and Utilization
- Purchasing Power and Budget Allocations
- Regulatory and Compliance Requirements
- Needs, Desires, and Pain Point Analysis
- Decision-Making Process
- By Value, 2025-2030
- By Volume, 2025-2030
- By Average Price, 2025-2030
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