Saudi Arabia Automotive Components Market, By Vehicle Type (Passenger Car, Commercial Vehicle), By Component (Engine Parts, Body & Chassis, Suspension & Brakes, Drive Transmission & Steering Parts, Electrical Parts and Equipment), By Demand Category (OEM, Replacement), By Region, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

Saudi Arabia automotive components market was valued at USD 6.51 Billion in 2024 and is expected to reach USD 10.24 Billion by 2030 with a CAGR of 7.8% during the forecast period. The Saudi Arabia automotive components market is experiencing robust growth driven by a combination of economic diversification initiatives, rising vehicle ownership, and increased local manufacturing capabilities under the Vision 2030 framework. The government's push to localize automotive production and reduce import dependence is attracting significant foreign direct investment and encouraging joint ventures between global OEMs and local players. Additionally, the rising population, urbanization, and expanding middle class are fueling demand for personal mobility, which in turn drives the consumption of automotive components. The Kingdom’s strategic focus on infrastructure development, logistics, and industrial zones is enhancing supply chain efficiency and distribution networks, thereby supporting the growth of both OEM and aftermarket segments.

Environmental sustainability and the global shift toward electric mobility are also beginning to influence the market, with early investments in electric vehicle (EV) infrastructure and green mobility initiatives. Technological advancements, such as the adoption of telematics, smart diagnostics, and advanced driver-assistance systems (ADAS), are increasingly reflected in the demand for high-performance and intelligent automotive components. Moreover, the government’s support for local SMEs and the introduction of favorable policies and incentives are fostering innovation and capacity building in the domestic component manufacturing ecosystem. The growing preference for high-end vehicles and SUVs, coupled with extreme climatic conditions in the region, is also influencing consumer demand for durable and high-performance parts. Lastly, the post-pandemic economic recovery and improved disposable income are reviving vehicle sales and service-related activities, thereby accelerating component replacement cycles and boosting market expansion.

Key Market Drivers

Government Vision 2030 and Localization Push

One of the most significant drivers of the Saudi Arabia automotive components market is the government's Vision 2030 initiative, which is reshaping the industrial landscape of the Kingdom. Vision 2030 places a strong emphasis on diversifying the economy away from oil dependency and fostering the development of non-oil sectors, including automotive manufacturing and its associated value chains. Saudi's Ministry of Industry reports a total of 160 automotive-related factories, including 33 auto-parts plants and 21 engine/structure units, with ambitions to scale production to 300,000 cars annually by 2030, aiming for 50% local content in domestic vehicle sales. In line with this, the Saudi government has rolled out strategic programs such as the National Industrial Development and Logistics Program (NIDLP), which promotes domestic production, encourages technology transfer, and incentivizes global OEMs and component manufacturers to establish local operations. This localization push is further supported by incentives like tax exemptions, soft loans, free industrial land, and access to government-backed R&D facilities. Moreover, the Public Investment Fund (PIF) is investing heavily in emerging mobility sectors, including electric vehicles and autonomous technologies, which has drawn international players to consider component manufacturing partnerships within the Kingdom. As a result, a domestic supplier ecosystem is gradually emerging, supporting not just OEM assembly plants but also independent aftermarket services. This long-term policy vision is creating a sustainable and resilient automotive component manufacturing base, reducing reliance on imports, and fueling demand for locally sourced parts.

Expanding Vehicle Ownership and Fleet Growth

A steadily growing population, combined with a rising standard of living and increasing urbanization, is propelling the growth of vehicle ownership across Saudi Arabia. With a young and tech-savvy demographic, there is a heightened aspiration for personal mobility, which has led to consistent year-on-year growth in the sales of passenger cars and commercial vehicles. Saudi imports surged to 93,300 cars in 2023 (up from ~66,900 in 2022). The relaxation of driving restrictions for women in 2018 added a new dimension to the demand landscape, significantly increasing the number of first-time car buyers. Additionally, the expanding e-commerce and logistics sectors are contributing to the rising number of light commercial vehicles on the road, further boosting demand for replacement and maintenance components. Fleet operators, taxi aggregators, and logistics firms require consistent access to high-quality components to maintain uptime, safety, and operational efficiency, creating steady aftermarket demand. Furthermore, Saudi Arabia's vast geography and extreme climatic conditions—characterized by high temperatures, dust, and long driving distances—lead to accelerated wear and tear of vehicle components. This necessitates frequent maintenance cycles and replacement of parts such as filters, brakes, radiators, and electrical components, thereby expanding the market size. The combination of growing vehicle penetration and harsh environmental factors is contributing to a healthy and resilient demand for both OEM and aftermarket components.

Technology Integration and Aftermarket Digitalization

The Saudi automotive components market is increasingly influenced by global technological trends such as electrification, connectivity, and smart vehicle systems. As consumers in the Kingdom demand more technologically advanced vehicles, OEMs and component suppliers are introducing intelligent systems including advanced driver-assistance systems (ADAS), infotainment modules, electric power steering, and next-gen braking and suspension technologies. These innovations are reshaping the component landscape by shifting demand toward high-value, precision-engineered products that offer safety, efficiency, and digital integration. Moreover, as the adoption of electric and hybrid vehicles begins to gain momentum—driven by environmental goals and potential fuel subsidy reforms—the market is seeing a gradual increase in demand for specialized components such as electric drivetrains, battery management systems, and regenerative braking parts. In parallel, the digitalization of the aftermarket is transforming how vehicle owners purchase and install replacement parts. Online platforms and mobile apps offering e-commerce solutions for automotive parts, real-time inventory tracking, and doorstep delivery are gaining popularity, particularly among younger consumers and small garages. This is enhancing transparency, competition, and accessibility in the replacement components market. Additionally, the rise of diagnostic tools and connected service centers is facilitating predictive maintenance, allowing timely replacement of critical components before failure, thereby extending vehicle life and optimizing performance. These shifts are fostering a more technologically sophisticated and organized automotive components market in Saudi Arabia, with ample room for innovation and business growth.

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Key Market Challenges

Heavy Dependence on Imports and Underdeveloped Local Manufacturing Ecosystem

One of the most pressing challenges facing the Saudi Arabia automotive components market is its continued dependence on imported components due to an underdeveloped domestic manufacturing ecosystem. Despite the government's push for industrial diversification and local content development under Vision 2030, the automotive components sector remains largely reliant on foreign suppliers, particularly from countries like China, Japan, South Korea, the United States, and Germany. This dependence poses multiple risks, including exposure to international supply chain disruptions, fluctuating foreign exchange rates, increased transportation costs, and geopolitical uncertainties that can impact availability and pricing. In 2023, Saudi Arabia imported 117,565 kg of “Motor vehicle parts from India, followed closely by 113,324 kg from Thailand and substantial volumes from the UK, Mexico, Canada, France, Italy, and others. Moreover, the absence of a mature tier-1 and tier-2 supplier network within the Kingdom hampers the ability of OEMs and aftermarket service providers to access cost-effective, high-quality components locally. While there have been early investments and policy efforts to build domestic capacity, the scale, technical know-how, skilled labor availability, and global competitiveness of Saudi Arabia’s manufacturing sector are still in the developmental phase. High capital requirements, long gestation periods, and the lack of advanced R&D infrastructure also deter private-sector participation in component manufacturing. As a result, the market faces structural inefficiencies, and the goal of achieving significant localization remains a long-term rather than immediate prospect.

Skill Shortages and Limited Technical Expertise

The availability of skilled labor and technical expertise is another major hurdle restraining the growth of the automotive components market in Saudi Arabia. While the country has made commendable efforts to build vocational training programs and expand engineering education, there remains a significant gap in industry-specific skills required for precision manufacturing, quality control, R&D, and advanced technologies such as automation, mechatronics, and electric vehicle systems. Most local technicians and engineers lack hands-on experience in working with international-grade component production and high-tech automotive systems, which reduces the confidence of global OEMs to fully localize their supply chains in the Kingdom. Moreover, language barriers, cultural preferences for white-collar jobs, and limited practical exposure to manufacturing environments have historically discouraged local talent from entering the industrial sector in large numbers. The existing reliance on expatriate labor, particularly in technical and skilled trades, introduces further vulnerabilities due to changing labor policies and nationalization efforts (Saudization). Additionally, the transition toward digitalization and Industry 4.0 in automotive components manufacturing requires continual upskilling and workforce development, which many companies—especially SMEs—struggle to implement due to cost and resource constraints. Without a robust, well-trained, and future-ready workforce, the long-term scalability and innovation potential of the domestic components industry remain limited.

Fragmented Aftermarket and Prevalence of Counterfeit Components

The aftermarket segment in Saudi Arabia is facing structural challenges stemming from fragmentation, lack of standardization, and the widespread availability of counterfeit or substandard automotive components. While demand for replacement parts is high due to the country's extreme climatic conditions and growing vehicle parc, the supply side of the aftermarket is often characterized by inconsistent quality, unregulated pricing, and a lack of transparency. Many local garages and small retailers procure components from informal or gray market channels, where counterfeit parts are common, particularly for high-turnover items like brake pads, filters, spark plugs, and electrical sensors. These counterfeit products not only pose serious safety risks to consumers but also damage the reputation of genuine brands and erode trust in the formal supply chain. Enforcement of intellectual property rights and quality regulations remains inconsistent, and many consumers—especially in price-sensitive segments—lack awareness of the long-term costs and risks associated with using non-genuine parts. Furthermore, the aftermarket remains dominated by small, independent workshops that often lack digital tools, inventory management systems, and direct ties with authorized distributors, leading to inefficiencies and limited customer service capabilities. The lack of an organized, digitally integrated aftermarket network delays the adoption of predictive maintenance tools, diagnostic solutions, and telematics-based services that could improve efficiency and performance. Without significant reforms to streamline the aftermarket ecosystem, ensure quality control, and crack down on counterfeit products, the overall credibility and growth of the automotive components market will continue to be hindered.

Key Market Trends

Growing Influence of Sustainability and Circular Economy Principles

Sustainability is rapidly emerging as a transformative trend in Saudi Arabia’s automotive components market, reshaping how parts are manufactured, sourced, and disposed of. As part of the Kingdom’s broader environmental goals under Vision 2030 and the Saudi Green Initiative, industries—including automotive—are being pushed toward reducing their carbon footprint and integrating eco-friendly practices. In the automotive components sector, this has translated into rising demand for parts made from recyclable or lightweight materials such as aluminum alloys, carbon fiber composites, and biodegradable polymers. These materials not only reduce vehicle weight—thereby improving fuel efficiency—but also align with global emissions standards. Furthermore, there is an increasing focus on the remanufacturing and refurbishment of components like alternators, starters, clutches, and brake systems. This circular approach not only reduces waste but also offers cost-effective alternatives for end users. Workshops and fleet operators are gradually adopting component recycling practices to comply with sustainability requirements and to reduce operational costs. Local firms are also starting to collaborate with international recyclers and technology providers to establish eco-friendly dismantling and parts recovery facilities. Though still in its infancy, the push toward sustainability is expected to evolve from niche to mainstream, encouraging investments in green materials, cleaner production processes, and environmentally responsible disposal practices over the next decade.

Rise of Digitally Enabled Supply Chains and E-Commerce in Aftermarket Parts

Digitalization is revolutionizing the way automotive components are distributed and accessed in Saudi Arabia, particularly in the replacement and aftermarket segments. Traditionally characterized by a fragmented network of physical stores, informal retailers, and region-specific distributors, the aftermarket is undergoing a significant transformation through digital platforms and e-commerce penetration. Consumers—especially younger, tech-savvy buyers—are increasingly turning to online marketplaces to purchase spare parts, accessories, and even diagnostic tools. Local startups, global players, and traditional auto retailers are launching user-friendly mobile apps and websites that offer a wide catalog of components, transparent pricing, part authentication tools, and doorstep delivery. This trend is further supported by the growth of digital payment systems, logistics infrastructure, and warehousing capabilities in major cities such as Riyadh, Jeddah, and Dammam. B2B digital platforms are also emerging, allowing workshops and fleet owners to place bulk orders and track inventory in real time. Some platforms even integrate VIN-based part lookups, compatibility checks, and customer reviews, improving purchasing accuracy. As a result, consumer confidence is gradually shifting away from informal channels toward organized, traceable, and digitized platforms. This trend is expected to bring greater price standardization, better quality assurance, and improved customer service across the components value chain, ultimately modernizing the market landscape.

 Integration of Advanced Safety and Connectivity Technologies into Components

As Saudi consumers increasingly demand smarter, safer, and more connected vehicles, the automotive components market is evolving to accommodate advanced technologies embedded into key vehicle systems. The shift from mechanical to electronically controlled and sensor-based components is becoming more prominent across categories such as braking systems, steering units, suspension modules, and lighting systems. Demand is rising for ADAS-compatible components—like radar-equipped bumpers, electronic stability control (ESC) modules, and intelligent sensors—that enable lane-keeping assistance, adaptive cruise control, and automated emergency braking. Even in aftermarket scenarios, consumers and fleet operators are beginning to upgrade conventional components to tech-enhanced alternatives for better safety and performance. Moreover, the integration of connectivity tools into components—such as telematics-enabled ECUs (Electronic Control Units), smart infotainment interfaces, and remote diagnostics systems—is increasing. These components not only enhance user experience but also support predictive maintenance, fleet optimization, and real-time performance monitoring. Vehicle owners can now monitor battery health, engine conditions, or brake wear via smartphone apps and connected platforms. OEMs and Tier-1 suppliers are taking note of this trend and incorporating modular, software-defined component architectures that can receive over-the-air updates. This ongoing digital convergence of mechanical parts with software and connectivity is opening up new product segments and raising the technological threshold across the supply chain.

Segmental Insights

Demand Category Insights

In Saudi Arabia, OEM components was supplied directly to vehicle manufacturers and are integrated into new vehicles during assembly. This segment is characterized by stringent quality controls, long-term contracts, and consistent demand aligned with vehicle production cycles. In Saudi Arabia, this segment is gradually expanding as OEMs and their Tier-1 suppliers begin localizing manufacturing to reduce import reliance and respond to the government’s industrialization push. Major foreign OEMs such as Lucid Motors and Ceer (a PIF-backed EV company in partnership with Foxconn) are expected to further develop local supplier networks, creating stable demand for high-quality, precision-engineered OEM components. However, since Saudi Arabia is still in the early stages of developing a full-fledged vehicle manufacturing ecosystem, the OEM component market currently remains modest in scale compared to mature automotive nations.

Component Insights

In Saudi Arabia, Engine parts—including pistons, valves, camshafts, timing belts, and cooling systems—are foundational to vehicle performance. Due to the harsh climate of Saudi Arabia, where temperatures frequently cross 45°C, engine components experience high thermal loads. This leads to accelerated wear and tear, increasing demand for reliable and thermally efficient engine components. With consumers placing value on longevity and performance, aftermarket sales of engine parts remain resilient, especially for older vehicles no longer under warranty. Body & chassis components include fenders, bumpers, frames, doors, windshields, and other structural parts that define vehicle design and safety. This segment experiences strong demand both from OEMs (original equipment manufacturers) and the replacement market, particularly following accidents and body damage. The popularity of customization and aesthetic upgrades also supports aftermarket demand for body kits, grilles, and trim elements.

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Regional Insights

In Saudi Arabia, The Northern & Central region, particularly Riyadh, stands as the leading region in the Saudi Arabia automotive components market. As the political and administrative capital, Riyadh houses a dense concentration of passenger vehicles, commercial fleets, government vehicles, and company-owned cars. The region boasts the highest urban population, large-scale infrastructure, and an extensive network of authorized service centers, independent garages, and spare parts distributors. The increasing population and vehicle ownership—spurred by economic migration and urban development—support high aftermarket component sales, especially for engine parts, brake systems, and electrical components. Moreover, Riyadh serves as a distribution hub for components imported via central logistics corridors. In the northern part of this region, cities like Hail are increasingly important due to their location along trade routes. With significant government and private fleet operations and an emphasis on smart mobility projects, the Northern & Central region is expected to retain its dominance as the largest contributor to component sales.

Recent Developments

• In 2025, Tesla officially opened its first showroom and dedicated service center in Riyadh, marking its entry into the Saudi market. The launch includes plans for pop-up stores in Jeddah and Dammam, aligning with Vision 2030 goals to increase EV adoption. The infrastructure investment also signals a shift toward high-sophistication components like chargers and EV servicing systems.
• In 2025, Saudi Aramco, through its technologies arm, signed a strategic agreement with China’s BYD to develop next-generation vehicle efficiency technologies. The collaboration includes R&D and component innovation—especially battery powertrains and charging systems—accelerating Saudi Arabia’s green mobility aspirations.
• In 2025, The Crown Prince inaugurated the “King Salman Automotive Cluster” at King Abdullah Economic City (KAEC). This auto-manufacturing hub brings together OEMs and key suppliers, including Ceer (Saudi’s EV brand), Lucid, Hyundai, and Pirelli. It supports localized production of high-value components like EV drivetrains and tire systems.
• In 2025, Hyundai Motor Manufacturing Middle East (JV between PIF and Hyundai) broke ground on its first manufacturing facility in the Middle East, located within the King Salman Automotive Cluster at KAEC. The plant, set to produce 50,000 gas and EV units annually (launching Q4 2026), will also support component localization and skill building.
• In 2024, Indian EV maker Wardwizard Innovations signed a Letter of Intent to form a joint venture in Saudi Arabia to build an EV assembly facility and cell production plant. Initially producing two/three/four-wheelers, the JV signals growth in component supply chains for battery systems.

Key Market Players

• Robert Bosch GmbH
• DENSO Corporation
• ZF Friedrichshafen AG
• Toyota Boshoku Corporation
• Magna International Inc.
• Valeo
• Hyundai Mobis
• A Mazda Motor Corporation
• Faurecia SE
• Lear Corporation

Report Scope:

In this report, the Saudi Arabia Automotive Components market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Saudi Arabia Automotive Components Market, By Vehicle Type:

o   Passenger Car

o   Commercial Vehicle

• Saudi Arabia Automotive Components Market, By Component:

o   Engine Parts

o   Body & Chassis, Suspension & Brakes

o   Drive Transmission & Steering Parts

o   Electrical Parts and Equipment

• Saudi Arabia Automotive Components Market, By Demand Category:

o   OEM

o   Replacement

• Saudi Arabia Automotive Components Market, By Region:

o   Northern & Central

o   Eastern

o   Western

o   Southern

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Saudi Arabia Automotive Components market.

Available Customizations:

Saudi Arabia Automotive Components market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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