Saudi Arabia Automotive Market
The Middle East/North Africa (MENA) region is growing at an estimated 36% with Saudi Arabia as the leading regional market. Saudi Arabia accounted for almost 52% of the vehicles sold in the Gulf Cooperation Council (GCC) and 35% in the MENA region in 2020. Total vehicles sold in Saudi Arabia in 2019 and 2020 were 556,000 and 436,000, respectively. Sales are projected to reach 543,000 units by 2025 with electric vehicles (EVs) making up only 32,000 units.
Despite global trends and policies supporting EVs, Saudi Arabia expects internal combustible engines (ICE) vehicles to make up the majority of vehicles driven in the Kingdom for the next 15-20 years, according to local industry experts. Toyota controls 30% of the Saudi market followed by Hyundai and KIA by 26% and Renault-Nissan-Mitsubishi by 9%. General Motors, Ford and Fiat Chrysler Automobiles make up the remaining share. It is forecasted that 62,000 EV units would be sold in the GCC region and almost 91,000 EVs in the MENA region by 2025. Nonetheless, there are only four assembly plants for commercial vehicles and these have a low volume output.
In accordance with the Kingdom’s vision 2030 goals, the National Industrial Development Center (NIDC) aims to attract 3-4 Original Equipment Manufacturers across the ICE and EV value chain, with of the goal of producing 300,000 vehicles annually with a 40% local content by 2030. NIDC provides incentives to enable industrialization through loans, tax incentives and tariff exemptions. Vehicle body panels, wheel components, tires, seats, fuel pumps, seat belts, rear indicator light covers, headlights, bumpers and engine covers are in demand and present market entry or expansion opportunities for t U.S. companies seeking joint venture partnerships in the Kingdom.
U.S. companies in the automotive and mobility sector should contact email@example.com for more details on promising opportunities in the Kingdom.