Saudi Arabia Automobile Market to Grow with a CAGR of 6.3% through 2030
Increasing
disposable income, rising demand for personal mobility, and national
initiatives to localize vehicle manufacturing are the factors driving the
market in the forecast period 2026–2030.
According to TechSci Research report, “Saudi Arabia Automobile
Market – By Region, Competition, Opportunities and Forecast, 2020-2030F”,
The Saudi Arabia Automobile Market was valued at USD 56.5 Billion in 2024 and
is expected to reach USD 81.5 Billion by 2030 with a CAGR of 6.3% during the
forecast period.
Saudi Arabia’s automobile industry is growing due to higher income
levels and increased reliance on personal vehicles for transportation. Ongoing
economic reforms and policy support are helping attract investments in vehicle
assembly and auto parts manufacturing, boosting the domestic ecosystem. A young
and mobile population is further contributing to rising demand for modern and
fuel-efficient vehicles.
Shifts in consumer behavior are reflected in growing interest in
electric mobility, smart features, and digital purchasing options. Buyers are
exploring cars with greater comfort, safety, and technology integration.
Subscription services and flexible financing are reshaping the ownership
experience, especially among urban dwellers.
The market continues to face barriers from limited domestic production
and challenges in building a self-sufficient supply chain. Emission control
mandates are requiring changes in engine technologies, while slow EV
infrastructure development is limiting electric vehicle adoption. Addressing
cost concerns, import duties, and regulatory changes will be essential to
maintain long-term market momentum.
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in-depth TOC on "Saudi Arabia Automobile Market"
Saudi Arabia Automobile Market Is
Segmented by Vehicle Type, Propulsion Type, Transmission Type, and By Region.
Saudi Arabia's automobile
market includes a diverse mix of propulsion systems catering to varying
consumer needs, cost considerations, and environmental goals. Internal
combustion engine (ICE) vehicles, powered by petrol or diesel, remain widely
used due to the country’s established fuel supply infrastructure and
familiarity with traditional engine performance. These vehicles serve daily
commuting, long-distance travel, and commercial operations across different
vehicle classes. Improvements in fuel efficiency and emissions management are
being integrated into newer ICE models to meet regulatory standards. Electric vehicles (EVs) are
gradually entering the market as awareness grows and government support for
zero-emission transport increases. EVs offer benefits such as lower operating
costs, minimal emissions, and quieter operation. While charging network availability
remains limited, pilot programs and private investments are expanding public
charging stations in select areas. Efforts to localize EV manufacturing and
establish battery production partnerships are underway to reduce import
dependency and foster domestic growth.
The Eastern region of Saudi
Arabia recorded the fastest growth in the automobile sector in 2024, driven by
rising vehicle demand and infrastructure development across urban and
semi-urban zones. Increased residential expansion, industrial growth, and commercial
activities created new mobility needs, prompting higher vehicle purchases
across various customer segments. Consumers in the region are responding to
improved road connectivity and the availability of auto financing schemes that
lower entry barriers for first-time vehicle owners. Rising employment and
business expansion in the Eastern cities contributed to the surge in demand for
both personal and fleet vehicles. The region witnessed higher demand for
passenger cars suited for urban commuting, as well as commercial vehicles required
for construction, logistics, and services. Young professionals and growing
families showed increasing interest in new vehicle models with advanced
features, helping sustain momentum in the market. Used vehicle markets also
expanded, offering budget-friendly options to middle-income consumers.
Major Market Players
Operating in Saudi Arabia Automobile Market Are:
- Toyota Motor Corporation
- Hyundai Motor Company
- Stellantis
- MAN SE
- Honda Motor Company
- Ford Motor Company
- Daimler AG
- AB Volvo
- Hino Motors, Ltd
- Tata Motors Limited
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“Vehicles are increasingly becoming part of a broader connected ecosystem, linking with mobile apps, smart home devices, and traffic management systems. Real-time telematics, vehicle-to-everything (V2X) communication, and over-the-air (OTA) updates are enhancing vehicle intelligence and performance. Data collected from connected cars is being used to develop predictive analytics, improve navigation, and optimize fuel efficiency. Automakers are forming collaborations with tech firms to develop integrated mobility solutions. The connected car trend is reshaping consumer expectations around vehicle utility, with a focus on personalization, convenience, and continuous improvement through software updates”, said Mr. Karan Chechi, Research Director of TechSci
Research, a research-based global management consulting firm.
“Saudi Arabia Automobile Market By Vehicle Type (Two Wheeler, Passenger Car, Commercial Vehicle, OTR), By Propulsion Type (ICE, Electric), By Transmission Type (Manual, Automatic), By Region, Competition, Opportunities and Forecast, 2020-2030F”, assesses the market's future growth potential and provides data on
market size, trends, and forecasts. It aims to offer comprehensive market
insights, helping decision-makers make informed investment choices. The report
also highlights emerging trends, key drivers, challenges, and opportunities in
the Saudi Arabia Automobile Market.
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