Saudi Arabia Electric Vehicle Market Grow with a CAGR of 19.81% through 2030

Saudi Arabia electric vehicle market is driven by Vision 2030, sustainability goals, infrastructure investments, and government incentives, with increasing consumer interest, local manufacturing push, and expanding charging networks

According to TechSci Research report, “Saudi Arabia Electric Vehicle Market – By Region, Competition, Forecast & Opportunities, 2030F”, the Saudi Arabia Electric Vehicle market stood at USD 0.61million in 2024 and is anticipated to grow USD 1.80 million by 2030 with a CAGR of 19.81% during forecast period. The electric vehicle (EV) market in Saudi Arabia is undergoing a significant transformation, fueled by a combination of visionary government initiatives, strategic investments, and growing environmental awareness. At the heart of this transition is the Kingdom's Vision 2030 a national roadmap aimed at diversifying the economy and reducing dependence on oil. As part of this vision, Saudi Arabia is prioritizing sustainable mobility, with ambitious goals to reduce carbon emissions and promote cleaner modes of transportation. The government’s commitment to electric mobility is evident in the policy frameworks, infrastructure development, and large-scale industrial investments that are being rapidly implemented across the country.

One of the primary catalysts driving the EV market in Saudi Arabia is the government’s aggressive push to localize the automotive industry. According to the Ministry of Industry and Mineral Resources (2024), Saudi Arabia plans to locally manufacture over 300,000 vehicles annually by 2030, including internal combustion, hybrid, and electric vehicles. This target is part of the broader strategy to build a robust and self-sustaining automotive ecosystem. Key projects like the launch of Ceer—Saudi Arabia’s first national EV brand exemplify this commitment. A joint venture between the Public Investment Fund (PIF) and Foxconn, Ceer is expected to design, manufacture, and market electric vehicles tailored to regional and global standards. Similarly, PIF’s investment in Lucid Motors and the establishment of the AMP-2 manufacturing facility in King Abdullah Economic City underscore the Kingdom's aspiration to become a global player in EV manufacturing and exports.

Sustainability-oriented mega-projects such as NEOM, The Line, and King Salman Park are being developed with electric mobility at their core. These projects are designed to operate entirely on renewable energy and incorporate autonomous electric vehicles, AI-powered transport systems, and digital connectivity. In these futuristic urban environments, traditional combustion vehicles are being replaced by electric and shared mobility solutions, supported by advanced technologies like vehicle-to-grid (V2G) integration and solar-powered charging stations. These projects are not only transforming the urban landscape but also creating fertile ground for innovation and global investment in the EV space.

Government policy and regulatory frameworks are also instrumental in shaping the EV market. Saudi Arabia has introduced a series of incentives to encourage EV adoption, including import duty exemptions, free vehicle registration, and streamlined licensing procedures for EV owners. These policies are complemented by revised technical regulations from the Saudi Standards, Metrology and Quality Organization (SASO), which ensure compatibility and safety standards for electric vehicles and charging infrastructure. Additionally, the Transport General Authority (TGA) is implementing sustainable mobility plans, including pilot programs for electric taxis, buses, and last-mile delivery vehicles, further expanding the use of EVs beyond private ownership.

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The Saudi Arabia Electric Vehicle market is segmented into vehicle type, range, propulsion, battery capacity and company.

Based on the propulsion, Hybrid Electric Vehicles (HEVs) are emerging as the fastest-growing segment in Saudi Arabia’s electric vehicle market. Their dual powertrain system—combining internal combustion engines with electric motors—offers improved fuel efficiency and lower emissions without the need for a dedicated charging infrastructure. This makes HEVs an attractive option for consumers transitioning from traditional vehicles, particularly in areas where EV charging stations are still limited. Additionally, HEVs are well-suited for long-distance travel and high-temperature conditions, aligning with local driving preferences. Government sustainability goals and increased availability of hybrid models from major automakers are further accelerating the segment's rapid adoption and growth.

Based on the region, The Western region of Saudi Arabia is the fastest-growing area in the electric vehicle market, driven by rapid urbanization, rising environmental awareness, and major infrastructure developments. Cities like Jeddah, Makkah, and Madinah are witnessing increasing EV adoption supported by improved charging infrastructure and smart city initiatives. The presence of high population density and tourism activity in the region is encouraging demand for cleaner and more efficient transportation. Government-backed sustainability projects and mobility reforms are further enhancing the ecosystem, making the Western region a key hub for EV deployment and growth as the Kingdom progresses toward its Vision 2030 objectives.

Major companies operating in Saudi Arabia Electric Vehicle market are:

• Lucid Group, Inc.
• Kia Corporation
• General Motors Company
• Nissan Motor Corporation
• Ford Motor Company
• Toyota Motor Corporation
• BMW AG
• Tesla Inc.
• Porsche AG
• Rivian Automotive, Inc.

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“The consumer mindset in Saudi Arabia is also gradually shifting in favor of electric mobility. With rising awareness of climate change, air quality, and energy efficiency, consumers are increasingly viewing EVs as a viable alternative to traditional vehicles. The availability of international EV brands, coupled with the emergence of local models from companies like Ceer, is expanding consumer choice and confidence. Furthermore, advancements in battery technology and vehicle range, coupled with a growing second-hand EV market, are alleviating concerns around cost and performance. The involvement of global automotive giants is another factor boosting the credibility and competitiveness of the Saudi EV market. Companies such as Tesla, BYD, and Hyundai have shown interest in entering or expanding their presence in the Kingdom, either through direct sales or partnerships with local entities. Their participation not only brings cutting-edge technology but also accelerates knowledge transfer and skills development within the local workforce. This international engagement is being further encouraged by Saudi Arabia’s efforts to improve its investment climate, simplify business processes, and offer attractive incentives to foreign investors in the EV domain,” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

Saudi Arabia Electric Vehicle Market, By Vehicle Type (Two-Wheeler, Passenger Car, LCV, M&HCV), By Range (0-50 Miles, 51-150 Miles, 151-200 Miles, 201-400 Miles, above 400 Mile), By Propulsion (BEV, HEV, PHEV, FCEV), By Battery Capacity (<50 kWh, 51–100 kWh, 101–200 kWh, 201-300 kWh, Above 300 kWh), By Region, Competition, Forecast & Opportunities, 2020-2030F”, has evaluated the future growth potential of SAUDI ARABIA Electric Vehicle market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the Saudi Arabia Electric Vehicle market.

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