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Saudi Arabia Passenger Car Market is Driven by SUV Passenger Car Segment During the Forecast Period

Increasing demand towards electric vehicles and increasing infrastructure activities drives the Saudi Arabia Passenger Car Market through 2028.

According to TechSci Research report, Saudi Arabia Passenger Car Market – By Region, Competition, Forecast and Opportunities, 2018-2028F,” Saudi Arabia passenger car market is anticipated to increase in the coming years. Technology development and the expansion of the automobile industry in Saudi Arabia are essential for the development of the nation's economy. Furthermore, in order to reach the target of producing 300,000 vehicles annually with 40% local content by 2030, the National Industrial Development Center (NIDC) intends to entice four-wheeler original equipment manufacturers to the Internal combustion engine (ICE) and electric vehicle (EV) value chains. In addition to the expanding Saudi vehicle sector, the National Industrial Development Centre (NIDC) offers incentives to support industrialization through loans, tax breaks, and tariff exemptions. Additionally, rise in demand for electric vehicles is projected to fuel the market expansion in the coming years.

Saudi Arabia constructing a number of infrastructure projects, including infrastructure for electric vehicle charging, to increase the penetration of passenger cars in the nation. Also, as infrastructure construction operations rise, better roads can benefit the automotive business. Also, it is projected that the demand for personal automobiles in the nation would rise as a result of various road transportation infrastructure, which will help the Saudi Arabian passenger car industry in the subsequent years. Saudi Arabia anticipates internal combustion engine (ICE) vehicles to make up the bulk of vehicles driven in the Kingdom for the next 15-20 years, according to local industry analysts, despite worldwide trends and policies promoting EVs. The most significant shareholder is Toyota, followed by Hyundai and KIA motors.

Browse more than XX market data Figures spread through XX Pages and an in-depth TOC on "Saudi Arabia Passenger Car Market"

The COVID-19 pandemic and associated restrictive measures, including travel ban and the suspension of Hajj and Umrah pilgrims, had an impact on the automotive industry in 2020. Saudi Arabia's economy shrank by 7% in the second quarter of 2020, a record-low decline brought on by the COVID-19 pandemic. According to the General Directorate of Statistics in Saudi Arabia, the gross domestic product (GDP) of the Kingdom of Saudi Arabia fell by 1.0% in the first quarter of 2020, compared to the same period in 2019. Moreover, as per factors mentioned above, the Saudi Arabia passenger car market will have considerable growth in the upcoming years.

In 2022, Crown Prince Mohammed bin Salman established Ceer, the country's first electric vehicle brand. Ceer is anticipated to go on sale in 2025. The company anticipates 150 million USD in foreign direct investment for Saudi Arabia's supply chain expansion for electric vehicles. In April 2022, General Motors and Honda Motor Company to work together to develop a range of electric vehicles that will go into commercial production by 2027. Furthermore, a cooperative venture was formed in December 2022 between Sumou Holding in Saudi Arabia and the Chinese new energy car company Enovate. As part of this strategy, they jointly invest around USD 500 million in Saudi Arabia in order to set up a base for manufacturing and R&D, with an expected annual output of over 100,000 electric vehicles. As per above mention, it is expected that Saudi Arabia passenger car market to grow at considerable CAGR.

Key market players in the Saudi Arabia Passenger Car Market include:

  • Toyota Motors Corporation
  • Hyundai Motor Company
  • Mazda Saudi Arabia
  • Nissan Motor Co. Ltd
  • General Motors Co.
  • Ford Middle East
  • Kia Motors Corp
  • Isuzu Motors Saudi Arabia Co. Ltd.
  • Volkswagen AG
  • Renault Middle East


Saudi Arabia Passenger Car Market can be segmented based on vehicle type, by propulsion, by transmission type, by price segment, by region, and by company. On the basis of vehicle type, the market is segmented into Sedan, SUV, MPV, and Hatchback.  Based on propulsion, the market is further segmented into Petrol, Diesel, CNG, Hybrid, and Electric. Based on the Transmission Type, the market is segmented into Automatic and Manual. Based on Price Segment, the market is segmented into Ultra Budget, Budget, and Premium. Further, the market is also divided into region-wise mainly north, west, south, and east.

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“Saudi Arabia Passenger Car Market is expected to boost the automobile industry’s overall revenue by 2028. Along with the addition of electric passenger cars in the market, it is further expected to increase in size. Based on vehicle type, the SUV segment to grow at higher CAGR due to rising adoptability of the segment.” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.

Saudi Arabia Passenger Car Market Segmented By Vehicle Type (Sedan, SUV, MPV, Hatchback), By Propulsion (Petrol, Diesel, CNG, Hybrid, Electric), By Transmission Type (Automatic, Manual), By Price Segment (Ultra Budget, Budget, Premium), By Region (Northern & Central, Southern, Eastern, Western), Competition Forecast & Opportunities, 2018- 2028F has evaluated the future growth potential of Saudi Arabia Passenger Car 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 Passenger Car Market.


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