Electric Vehicle Market in Saudi Arabia

Saudi Arabia Electric Vehicle Market Outlook 2025: Growth Trends, Government Policies & Infrastructure Insights

The Saudi Arabia EV market was valued at USD 2,259 Million in 2024 and is projected to grow to USD 11,500 Million by 2030, with a compound annual growth rate (CAGR) of 33.1% from 2025 to 2030.

Saudi Arabia plays a vital role in shaping the regional electric vehicle (EV) landscape due to its economic strength and commitment to sustainability. The country is actively diversifying its economy by investing in clean transportation solutions, particularly electric vehicles. With support from the Public Investment Fund (PIF), projects like Ceer Motors and the Lucid Motors production facility are positioning Saudi Arabia as a hub for regional EV manufacturing.

Cities such as Riyadh, Jeddah, and NEOM are emerging as key areas for infrastructure development, including EV charging networks. Additionally, favorable government policies, such as customs duty exemptions and incentives for green mobility, are attracting consumer and investor interest. The availability of abundant solar energy further supports the long-term goal of powering EVs sustainably.

As a result, Saudi Arabia is expected to lead the adoption of electric vehicles across the Gulf region, transforming from a traditionally fuel-based economy into a pioneer in electric mobility.

Initiatives like Ceer Motors and Lucid Motors’ manufacturing plant showcase strong state-backed investment in local EV production, boosting market growth.

Saudi Arabia is making significant investments in its local electric vehicle (EV) manufacturing ecosystem to reduce reliance on imports and enhance technological capabilities. The Public Investment Fund (PIF) is playing a central role by supporting flagship projects like Ceer Motors, the first Saudi electric car brand, and Lucid Motors, which is setting up a major manufacturing facility in King Abdullah Economic City (KAEC). These investments aim to transform the Kingdom into a regional hub for EV production, with a target of manufacturing over 150,000 vehicles annually in the near future.

These initiatives align with Vision 2030’s agenda for industrial localization. High-profile projects are creating job opportunities, encouraging local research and development, and strengthening supply chain capabilities. The strategic funding provided by PIF and other government agencies demonstrates a strong national commitment to establishing a comprehensive EV ecosystem that encompasses design, production, distribution, and aftersales services.

Increasing focus on reducing carbon emissions and air pollution is pushing both consumers and industries to adopt cleaner mobility solutions.

Growing environmental awareness among citizens, businesses, and government institutions is accelerating the transition to electric vehicles (EVs) in Saudi Arabia. Issues such as air pollution, carbon emissions, and climate change have garnered significant attention, especially in urban centers like Riyadh and Jeddah. In line with international climate agreements and its own environmental commitments, Saudi Arabia is aiming for net-zero emissions by 2060. Electric vehicles are viewed as a crucial tool to help achieve this target by reducing dependence on fossil fuels in the transportation sector.

Public campaigns and educational initiatives are raising consumer awareness about sustainable living. Additionally, EVs are increasingly being seen as symbols of a modern and forward-looking lifestyle. This cultural shift, combined with supportive policies and urban development focused on sustainability such as the NEOM project is creating an environment where electric vehicles are widely accepted and preferred.

Government and private sectors are collaborating to develop widespread EV charging networks, especially in urban areas and megaprojects like NEOM.

The expansion of electric vehicle (EV) charging infrastructure is crucial for promoting EV adoption in Saudi Arabia. The government, in collaboration with private sector partners, is swiftly deploying charging stations across major cities, highways, and future developments like NEOM. Companies such as Electromin and Schneider Electric are actively involved in implementing smart charging solutions. Public parking lots, shopping malls, residential complexes, and fuel stations are being upgraded with charging ports to ensure easy access for EV users. The integration of fast-charging technology is also reducing charging times, making EVs more practical for everyday use. Furthermore, new regulations are being introduced to mandate the inclusion of EV infrastructure in new construction projects. These developments are addressing range anxiety and building public confidence in the transition to electric mobility. Continued investment in a robust and accessible charging network is essential to achieve the Kingdom’s ambitious EV targets.

Though fuel is subsidized, long-term ownership savings and reduced maintenance costs of EVs are attracting cost-conscious consumers.

Traditionally, Saudi Arabia benefits from low fuel prices due to government subsidies. However, the long-term economic advantages of electric vehicles (EVs) are becoming increasingly clear. EVs generally have lower operating costs because they are more energy-efficient, have fewer moving parts, and require less maintenance compared to internal combustion engine (ICE) vehicles. As the global economy evolves and fuel subsidy reforms are gradually introduced, the cost benefits of EVs are becoming more significant.

Moreover, the high energy efficiency of EVs, combined with the growing availability of solar-powered charging options, enhances savings for users. For businesses that operate fleet vehicles, such as taxis or delivery services, these savings can lead to a considerably lower total cost of ownership (TCO). This economic rationale, especially when paired with government incentives, is encouraging both consumers and commercial users to consider EV options, thus driving wider adoption in the Saudi Arabian EV market.

Collaborations with global EV leaders are bringing advanced technology and expertise to the Saudi market, accelerating EV readiness.

Saudi Arabia is actively forming global partnerships to introduce advanced electric vehicle (EV) technologies into its domestic market. Collaborations with top international automakers and technology companies have brought innovative manufacturing practices, smart mobility solutions, and state-of-the-art battery technologies to the Kingdom. For example, the entry of Lucid Motors not only focuses on vehicle production but also contributes research and development along with next-generation battery expertise. The integration of artificial intelligence, the Internet of Things (IoT), and telematics is transforming EVs into smart, connected devices that improve the driver experience and enhance vehicle efficiency. Furthermore, these partnerships are promoting local talent development through knowledge transfer and skill-building programs. Universities and vocational institutes are beginning to tailor their curriculums to meet the needs of EV technology. These collaborations ensure that Saudi Arabia remains competitive in the global EV market while boosting its domestic capabilities in advanced electric mobility solutions.

Competitive Landscape

Some of the major companies operating within the Saudi Arabia EV market are: Lucid Motors, Ceer Motors, Tesla Inc., BYD, Hyundai Motor Company, Nissan Motor Corporation, Others.