Saudi Arabia Electric Vehicle Market Research Report: Forecast (2024-2030)

Market Insights & Analysis: Saudi Arabia Electric Vehicle Market (2024-30)

The Saudi Arabia Electric Vehicle Market is expected to grow at an impressive CAGR of around 53.5% during the forecast period, i.e., 2024-30. Currently, the industry is in the nascent stage, and a significant expansion is likely to be witnessed in the forthcoming years, which owes to the increasing government focus on renewable energy production to reduce the rising pollution & emission levels on account of the burgeoning consumption of fossil fuels, coupled with various efforts toward diversifying the economy away from the oil & gas sector by investing in other industries. Saudi Arabia has announced its target to attain net-zero emissions by 2060 and developed its first NDC (Nationally Determined Contribution) under the Paris Agreement.

• In 2021, the government announced its aim to attain 30% electric vehicles in Riyadh by 2030. With this announcement, the country has observed a notable surge in investments and partnership contracts between automakers & EV charging infrastructure providers.

Additionally, in one of the objectives of Saudi Vision 2030, NIDC (National Industrial Development Center) aims to attract substantial investments by automotive OEMs in the Saudi Arabia market, which, in turn, would boost EV production & sales in the coming years.

• In November 2022, Siemens signed an agreement to supply its ultra-fast EV chargers to Electromin, i.e., expanding its charging network in Saudi Arabia and planning to develop EV services and infrastructure across the entire Middle East.

Hence, with these increasing number of partnerships and agreements, massive investments in EV production, and charging infrastructure expansion are expected in the coming years, which, in turn, would stimulate the Saudi Arabia Electric Vehicle Market.

Saudi Arabia Electric Vehicle Market Driver:

Various Government Initiatives Toward Attaining Zero-carbon Emissions - The government of Saudi Arabia is introducing several programs and initiatives toward promoting green mobility across the country, as transportation plays a crucial role in reducing carbon footprints. The government is investing massively in establishing electrically-powered public transportation systems while encouraging consumers to shift toward EVs or natural gas/hydrogen-based vehicles. Hence, with rising fuel prices and rising concerns over environmental degradation, more & more consumers are showing interest in EVs, which, consequently, would drive the Electric Vehicle Market in Saudi Arabia through 2030.

Saudi Arabia Electric Vehicle Market Growth Opportunity:

Massive R&D Investments by Automakers in Establishing Adequate EV Charging Infrastructure - In order to cater to the growing consumer inclination toward EVs, several companies are carrying out partnerships in establishing appropriate EV charging infrastructure and making massive R&D investments in establishing innovations in both vehicles & battery technologies. This is in line with Saudi Vision 2030, which aims to reduce its dependency on the oil & gas sector and promote green mobility. Consequently, it will promote the adoption of EVs & HEVs in the country and create new avenues for the Saudi Arabia Electric Vehicle Market to expand significantly in the coming years.

Saudi Arabia Electric Vehicle Market (2024-30): Segmentation Analysis

Based on Vehicle Type:

• Passenger Vehicles
• Two-Wheelers
• Commercial Vehicles
  • Trucks
    • HCV (Above 8 Tons)
    • MHCV (4 to 8 Tons)
    • LCV (Up to 4 Tons)
  • Buses

The Passenger Vehicles segment is projected to acquire a notable share of the Saudi Arabia Electric Vehicle Market during 2024-30. The growth is attributed to rising environmental awareness, EV technology advancements, consumers' inclination towards EVs, and government initiatives. Also, the growing disposable income and the increasing working population augment the demand for passenger electric vehicles.

Saudi Arabia Electric Vehicle Industry Recent Development:

• January 2023: Canoo Inc. (GOEV) announced its partnership with GCC (General Contracting Company) Olayan for the sales, service, & distribution of its EVs in Saudi Arabia. There are also plans to launch a JV and co-develop a “digital vehicle ecosystem” for local assembly & EV manufacturing.
• May 2022: Lucid Group announced its plans to establish its EV manufacturing facility in Jeddah, with a production capacity of 155,000 vehicles annually, which will be the company's first factory outside the US and initially serve the local market.

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

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