Saudi Arabia Electric Car Market Research Report: Forecast (2025-2030)

Market Insights & Analysis: Saudi Arabia Electric Car Market (2025-30):

The Saudi Arabia Electric Car Market size was valued at around USD 560 million in 2024 and is projected to reach USD 2,224.88 million by 2030. Along with this, the market is estimated to grow at a CAGR of around 25.85% during the forecast period, i.e., 2025-30. The growth of market is driven by low carbon emissions, increasing penetration of urban mobility solutions, growing investments in the development of the electric ecosystem, government support, increasing integration of AI, ML, Cloud, etc., advancements in batteries, urbanization, and others.

The Kingdom of Saudi Arabia is an oil-dependent nation with the majority of its operations relying on oil; thus, to become an oil-independent nation and to minimise carbon emissions, the authority has devised Vision 2030 to achieve the sustainability goals. The smart city projects and cities like NEOM, The Line, and others in Saudi Arabia ban and impose stringent regulations on the traditional oil-driven vehicles, thus promoting the adoption of electric vehicles, including electric cars, in the nation. Thus, attracting the key market players and global players to the region with a business-friendly environment generates an opportunity for the growth of the electric car industry in the forecasted period.       

The government initiatives, such as the Saudi Green Initiative, National Transport and Logistics Strategy, Electric Vehicle Infrastructure Development Program, NEOM Mobility Initiative, and others, have led to a spike in the adoption of electric cars among the middle-income population. These programs offer several incentives and subsidies covering around 50% of the licensing fees for the EVs and around 24% for the hybrid vehicles, and the exemption of road taxes and reduced VAT on electric vehicles, further boost the demand for electric Cars in Saudi Arabia.

Saudi Arabia Electric Car Market Scope:

Saudi Arabia Electric Car Market Driver:

Inclination Towards Carbon Neutrality Driving Market Growth – The investments and public-private partnerships in the electric car market have increased lately, due to the increasing government support and initiatives in the country for the electrification of the automotive sector.   

The government support has increased lately in the market to attain carbon neutrality and attain Saudi Arabia’s Vision 2030, for effective management of the traffic, to conserve the depleting fossil fuels, focus on public health, and offer a quality of life to the citizens. Thus, the surging carbon emissions, depleting fossil fuels, and the need to improve public health have pushed the government to promote the adoption of electric products, including automotive. To support the shift, the Saudi government announced to invest more than USD50 billion by 2030, in the manufacturing, charging infrastructure development, and in the creation of the electric eco-system. Additionally, the government is investing in public-private partnerships to attain its goal to reduce carbon emissions by 55% by 2030. For instance, the joint venture of the government and Hyundai Motor Manufacturing Middle East (HMMME), of investment worth USD500 million, to set up the manufacturing units of the automaker in the country by 2026. Similarly, the other ongoing partnerships with Lucid Motors and others promote the adoption of electric cars in the nation.

Saudi Arabia Electric Car Market Challenge:

Limited Infrastructure Support Impeding Market Growth – The government is supporting the development of the charging infrastructure to establish functional charging points of more than 5,000 by 2030; however, in 2025, only 101 charging points were established, mainly for electric cars. The limited charging support severely impacts long-distance travelling and daily electric car users outside Riyadh, Jeddah, and Dammam, as they lack charging points. For instance, the Riyadh-Makkah route, spanning around 900km, lacks the charging infrastructure, discouraging long-distance travel via electric cars in the country, thus deterring the rate of adoption.        

Additionally, the rapidly growing charging infrastructure requires electrical load management, grid stability, cybersecurity risk management, and other technical challenges, along with the extreme temperature of Saudi Arabia, complicating the charging procedure, thus hampering the market growth & expansion.  

Saudi Arabia Electric Car Market Trend:

Adoption of Advanced Driving Assistance System (ADAS) in Electric Cars – The advances like AI, ML, cloud, IIoT, and others are gaining popularity in the electric automotive industry, including cars. It is due to the advanced anti-theft solutions, real-time monitoring & analysis, emergency alerts, optimized navigation, adaptive pedal assistance, adaptive cruise control, automated diving assistance, etc.

The advancements and fusion of AI and LiDAR in the industry have resulted in its increasing adoption in electric cars. ADAS is a sensor and camera-controlled system that real-time monitors the surroundings of the vehicles, and automates the lane keeping, emergency braking system, parking assistance, and others. As a result, it is extensively demanded in vehicles, because of its advanced safety features, alerting the drivers, reducing the risk of accidents and collisions. Several electric car manufacturers, like BYD, Lucid Motors, and others, are adopting ADAS technologies into their e-cars, offering more control and safety features. Thus, such advancements drive the growth & expansion of the e-car industry in the country.     

Saudi Arabia Electric Car Market (2025-30): Segmentation Analysis

The Saudi Arabia Electric Car Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment & includes predictions for the period 2025–2030 at the country level. Based on the analysis, the market has been further classified as:

Based on Battery Type:

• Lithium-Ion Battery
• Nickel-Metal Hydride Battery
• Lead Acid Battery
• Others

Based on battery type, the Lithium-Ion Battery holds the largest market share, around 53%. This market share is driven due to advances in battery technologies due to the need for higher capacity, fast charging, operational efficiency, the dynamics of the vehicles, and strict emission regulations in the automotive industry.

The electric car in Saudi Arabia is mostly powered using an advanced lithium-ion battery. The lithium-ion battery has more capacitance, which results in storing the charge for a longer duration. This results in avoiding the frequent charging of the battery and thus is efficient for longer travel.  The leading market players like Ceer Motors, Lucid Group Inc., Tesla Inc., Hyundai Motor Company & Kia, BYD Auto, and others are heavily integrating lithium-ion battery over the conventional such as lead acid and nickel-metal hydride battery, because of the high energy density, light-weight, environmentally safe, fast charging, longer operational lifespan, government support through subsidies & innovations, and others. Thus, population of Saudi Arabia is increasingly demanding lithium-ion battery-operated electric cars, which is ultimately augmenting the segmental revenue growth.

Based on End User:

• Individual
• Commercial
• Public Sector

The public sector holds the largest market share of about 48%. This is due to the increasing environmental consciousness among consumers, lower operational costs, Vision 2030, convenient urban mobility, increasing public fleet, rising white collar population, rising fuel prices, etc. The demand for electric vehicles in the public sector is primarily driven by the government mandates, Vision 2030 strategy, which aims to achieve around 30% of the vehicles in Riyadh to be electric by 2030. To fulfill this strategic plan, the government, through PIF, partnered with Lucid Motors in 2022 to purchase more than 100,000 EVs in the next ten years. Thus, increasing the deployment of electric vehicles in the public sector of the country.

The e-cars in the public sector are widely used for rentals and shared mobility services because of their cost-effectiveness, easier navigation through road traffic, easier handling, and others, making them the preferred choice for daily commute in the urban regions of the nation. Additionally, the infrastructure initiatives, such as Electric Vehicle Infrastructure Company (EVIQ), a joint venture, aim to install fast-charging units, supporting the public fleet and mobility programs, thus increasing the demand for electric cars in the public sector.

Top Electric Car Companies in the Saudi Arabia Market: Players, Analysis & Future Outlook

The leading Saudi Arabia Electric Car Companies in the market, including Ceer Motors, Lucid Group Inc., Tesla Inc., Nissan Motor Corporation, BMW AG, Hyundai Motor Company & Kia, BYD Auto, MG Motor (SAIC), Volkswagen Group, Geely Automobile Holdings (including Geometry, Zeekr, etc.), and others are looking forward to increasing their market size & share.

Saudi Arabia Electric Car Industry Recent Development:

• 2025: Nissan Motor Corporation launched the third-generation Nissan Leaf, redesigned as a compact crossover SUV. Equipped with a 75 kWh battery, it delivers an estimated range of up to 303 miles, aiming to reinvigorate Nissan’s EV momentum in global markets amid intensifying competition and evolving consumer preferences
• 2024: BMW AG significantly ramped up investment in electric vehicle (EV) R&D, aiming to offer over 15 fully electric models in 2024. The company also confirmed the launch of its Neue Klasse EV lineup in 2025, signaling a strategic shift toward next-generation, software-defined EV platforms built on advanced battery and digital architecture.

Gain a Competitive Edge with Our Saudi Arabia Electric Car Market Report

1. Saudi Arabia Electric Car Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. Saudi Arabia Electric Car Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

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