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

Market Overview

Saudi Arabia Electric Vehicle market was valued at USD 0.61million in 2024 and is anticipated to grow USD 1.80 million by 2030 with a CAGR of 19.81% during the forecast period. Saudi Arabia's electric vehicle (EV) market is rapidly evolving, supported by the government’s Vision 2030 agenda, which emphasizes sustainability, reduced carbon emissions, and economic diversification. Strategic initiatives, such as investments in EV infrastructure, including widespread charging stations and smart mobility solutions, are catalyzing growth. Partnerships with global EV manufacturers and local production efforts are further strengthening the ecosystem. Growing environmental awareness and supportive policies, including import incentives and subsidies, are encouraging EV adoption among consumers. The market also benefits from advancements in battery technology and digital connectivity, positioning Saudi Arabia as a key player in the Middle East’s green mobility shift.

Key Market Drivers

Vision 2030 and Government Policies

One of the primary drivers of the electric vehicle market in Saudi Arabia is the government’s Vision 2030 initiative, which aims to diversify the economy away from oil dependency and promote sustainable development. As part of this strategic vision, the Kingdom is committed to reducing its carbon footprint and improving air quality, both of which align with the adoption of electric mobility. According to the Saudi Ministry of Industry and Mineral Resources (2024), the Kingdom aims to locally manufacture over 300,000 vehicles annually by 2030 including electric models supporting EV market growth through industrialization and localization under Vision 2030.

Government policies and regulatory support are playing a crucial role in facilitating this transformation. Authorities are creating an enabling environment by offering various incentives, including reduced customs duties for EV imports, exemption from certain taxes and registration fees, and fast-track licensing for EV businesses. In addition, the Public Investment Fund (PIF) is investing heavily in domestic electric vehicle manufacturing, such as its backing of Lucid Motors and the establishment of Ceer, the Kingdom’s first homegrown EV brand. These steps demonstrate a strong political will and a long-term commitment to transforming the mobility landscape in line with Vision 2030 objectives.

Infrastructure Development and Smart Mobility

Infrastructure development is a critical factor accelerating EV adoption in Saudi Arabia. The government is working to establish a robust EV charging ecosystem that includes fast-charging networks across major highways, urban centers, and public spaces. Recent collaborations between government entities and private sector players have led to the deployment of smart charging stations, many of which are integrated with digital payment systems, real-time monitoring, and mobile applications. For instance, Under by Vision 2030, Saudi Arabia aims to make 30% of all vehicles in Riyadh electric by 2030, supported by over USD 50 billion in investments in EV manufacturing and infrastructure significantly accelerating market growth.

Furthermore, urban development projects like NEOM, The Line, and King Salman Park are being built with sustainability and smart mobility as central components. These projects integrate autonomous EVs, AI-powered transportation systems, and renewable energy sources, showcasing a futuristic model of urban mobility. The Kingdom is also exploring Vehicle-to-Grid (V2G) technology and solar-powered charging systems to enhance energy efficiency and reduce grid strain.

Local Manufacturing and Industrial Investment

Another significant growth driver is the push for local manufacturing and industrial investment in the EV space. In line with its broader industrialization goals, Saudi Arabia is taking strategic steps to establish itself as a regional manufacturing hub for electric vehicles and related components such as batteries, electric drivetrains, and charging hardware.

The Ceer brand, a joint venture between PIF and Foxconn, is a key example of this localized production strategy. Ceer aims to design, manufacture, and sell electric vehicles that cater to regional preferences and comply with global standards. Additionally, the PIF's investment in Lucid Motors, which is building a manufacturing facility in King Abdullah Economic City, reflects Saudi Arabia's ambition to become a global player in the EV supply chain.

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Key Market Challenges

Limited Charging Infrastructure and Range Anxiety

One of the most pressing challenges facing the growth of electric vehicles in Saudi Arabia is the limited availability of EV charging infrastructure. Although the government has initiated efforts to build a nationwide charging network, the current number of charging stations remains relatively low, especially outside major cities like Riyadh, Jeddah, and Dammam. This lack of coverage contributes to range anxiety, where potential users fear that their EVs may run out of power before reaching a charging station.

In a country as vast as Saudi Arabia, where long-distance driving between cities is common, the absence of a well-distributed network of fast chargers acts as a major deterrent for consumers. Additionally, many residential areas and commercial buildings are not yet equipped with EV charging capabilities, particularly in older neighborhoods or lower-income zones. The slow pace of infrastructure rollout, combined with limited public-private collaboration, hampers confidence in the practicality of EV ownership.

High Initial Costs and Limited Model Availability

Another significant barrier to widespread EV adoption is the high upfront cost of electric vehicles compared to conventional internal combustion engine (ICE) vehicles. While EVs offer long-term savings through lower fuel and maintenance costs, the initial purchase price remains a critical concern for price-sensitive consumers. Many EV models, especially those imported from premium brands, are positioned at a higher price point due to import duties, shipping costs, and a lack of local production at scale.

Although the government is working to promote domestic EV manufacturing through ventures like Ceer and Lucid Motors, the local market still lacks a wide variety of affordable models that cater to middle-income groups. The limited selection of EVs that meet both budget and performance expectations makes it difficult for many consumers to consider them as viable alternatives to traditional vehicles. Additionally, the relatively immature second-hand EV market in Saudi Arabia means fewer lower-cost options are available for first-time buyers.

Key Market Trends

Expansion of Public and Fast-Charging Networks

A significant trend in Saudi Arabia’s EV market is the rapid expansion of public and fast-charging infrastructure. The government, along with private companies, is actively working to overcome the country’s traditional dependency on fossil fuels by accelerating the rollout of EV charging stations. To accelerate EV adoption and strengthen the local automotive ecosystem, Saudi Arabia’s PIF and SEC launched a new EV infrastructure company aiming to install over 5,000 fast chargers across 1,000+ locations by 2030, driving private sector involvement.

Recent developments include partnerships with global EV infrastructure providers and local energy firms to install chargers in strategic locations such as shopping malls, petrol stations, business districts, and residential communities. Notably, fast-charging stations are being prioritized to enable quicker turnaround times for EV users, addressing concerns over charging delays and range anxiety.

Integration of EVs in Smart City and Mobility Projects

Electric vehicles are becoming a central feature in the Kingdom’s smart city and mobility development plans. Mega-projects such as NEOM, The Line, and Red Sea Global are designed with futuristic transportation solutions at their core, emphasizing zero-emission, autonomous, and AI-integrated electric mobility systems. According to the General Authority for Statistics, Saudi Arabia registered around 625,000 new vehicles in 2023, up from 540,000 in 2022 reflecting economic recovery and Vision 2030-driven government spending, which supports growing demand and infrastructure for electric vehicles.

These cities aim to eliminate traditional cars entirely and instead rely on electric buses, autonomous EVs, and shared mobility platforms to reduce emissions and enhance urban efficiency. EVs in these smart city projects are often connected to renewable energy sources such as solar or wind, making the transportation ecosystem entirely sustainable.

This trend reflects a broader global shift towards integrating transportation within digital ecosystems. Saudi Arabia’s smart city initiatives are likely to serve as testbeds and innovation centers for advanced EV technologies, autonomous driving, and mobility-as-a-service (MaaS) platforms.

Increasing Role of EVs in Commercial and Government Fleets

Electric vehicles are gaining popularity beyond private ownership, with a growing presence in government and commercial fleets. This shift is driven by the state’s sustainability mandates and the long-term cost benefits of EVs in high-mileage operations such as taxis, delivery services, and municipal transport.

Government agencies and large corporations are increasingly replacing conventional vehicles with electric alternatives to meet environmental goals and enhance operational efficiency. Taxi operators, logistics providers, and public transport authorities are piloting electric fleets in key cities, supported by government subsidies and favorable procurement policies.

Segmental Insights

Vehicle Type Insights

The passenger car segment is currently the dominating segment in Saudi Arabia's electric vehicle (EV) market. This dominance is driven by rising consumer interest in sustainable transportation, favorable government incentives, and the growing availability of electric sedans and SUVs. Urbanization and increasing environmental awareness are prompting individuals to shift from conventional vehicles to EVs, particularly for personal use. Additionally, partnerships with global automakers and the introduction of local EV brands like Ceer are expanding choices in the passenger segment. Improved charging infrastructure and technological advancements further support this growth, making passenger EVs the preferred choice among Saudi consumers.

Propulsion Insights

Battery Electric Vehicles (BEVs) are the dominating segment in Saudi Arabia's electric vehicle market, driven by the Kingdom's strong push toward zero-emission mobility under Vision 2030. BEVs produce no tailpipe emissions, aligning with national sustainability goals and attracting environmentally conscious consumers. Advancements in battery technology, extended driving ranges, and expanding fast-charging networks are enhancing the appeal of BEVs. Government incentives, such as import duty exemptions and registration benefits, further support adoption. The entry of global and local manufacturers offering a wide range of BEV models has also contributed to their dominance, making them the preferred choice in the evolving EV landscape.

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Regional Insights

The Northern and Central regions of Saudi Arabia are the dominating areas in the country's electric vehicle (EV) market, primarily due to their dense population, urban development, and economic activity. Cities like Riyadh, located in the Central region, are at the forefront of EV adoption, supported by robust infrastructure, government initiatives, and high consumer purchasing power. These regions benefit from early deployment of charging networks, smart city projects, and pilot programs promoting sustainable mobility. Additionally, strong government presence and corporate headquarters in these regions accelerate EV usage in both private and commercial sectors, reinforcing their leading position in the national EV market.

Recent Developments

• In April 2025, Tesla has officially launched in Saudi Arabia, opening its first showroom and service center in Riyadh. The debut included Model 3, Model Y, and Cybertruck displays, with plans for pop-up stores in Jeddah and Dammam boosting EV ambitions despite extreme heat and limited charging infrastructure

• In March 2024, Ceer has awarded a USD 1.3 billion contract to Modern Building Leaders and begun constructing its Electric Vehicle Manufacturing Complex in King Abdullah Economic City. The facility spans over 1 million m², featuring press, paint, assembly shops, test track, logistics, and advanced tech from global partners

• In Sep 2023, Lucid Motors inaugurated its Saudi facility, “AMP‑2,” in King Abdullah Economic City. Initially, it will reassemble components of Lucid Air vehicles sourced from its AMP‑1 factory in Casa Grande, Arizona, with a production target of 5,000 cars annually.

Key Market Players

• 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.

Report Scope:

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

• Saudi Arabia Electric Vehicle Market, By Vehicle Type:

o   Two-Wheeler

o   Passenger Car

o   LCV

o   M&HCV

• Saudi Arabia Electric Vehicle Market, By Range:

o   0-50 Miles

o   51-150 Miles

o   151-200 Miles

o   201-400 Miles

o   above 400 Mile

• Saudi Arabia Electric Vehicle Market, By Propulsion:

o   BEV

o   HEV

o   PHEV

o   FCEV

• Saudi Arabia Electric Vehicle Market, By Battery Capacity:

o   <50 kWh

o   51–100 kWh

o   101–200 kWh

o   201-300 kWh

o   Above 300 kWh

• Saudi Arabia Electric Vehicle Market, By Region:

o   Western

o   Eastern

o   Southern

o   Northern & Central

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the SAUDI ARABIA Electric Vehicle Market.

Available Customizations:

Saudi Arabia Electric Vehicle Market report with the given market data, Tech Sci 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).