Saudi Arabia EV market Size: Analysis By Vehicle Type (Passenger Vehicles, Commercial Vehicles, Two-Wheelers), By Propulsion Type (Battery Electric Vehicles (BEVs), Hybrid Electric Vehicles (HEVs), Plug-in Hybrid Electric Vehicles (PHEVs), Fuel Cell Electric Vehicles (FCEVs)), By Battery Capacity (Below 50 kWh, 51–100 kWh, 101–200 kWh, Above 200 kWh), By End-User (Private/Individual, Commercial Fleets, Government/Public Sector): Saudi Arabia and Regional Demand Supply Trends and Forecast-2025-2030

Market Outlook

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. The Saudi Arabia Electric Vehicle (EV) Market encompasses the development, production, distribution, and adoption of electric vehicles throughout the Kingdom of Saudi Arabia. It includes a variety of electric mobility solutions such as battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and associated infrastructure like charging stations, battery technology, and software platforms that enhance vehicle connectivity and energy efficiency.

The Saudi Arabia EV market is undergoing significant transformation, driven by a growing interest in sustainable transportation solutions and heightened environmental awareness. As urbanization increases and the demand for cleaner mobility rises, the EV ecosystem is expanding to include automotive manufacturers, government agencies, utility providers, and technology firms. These stakeholders are working together to create a robust supply chain that supports vehicle imports, local assembly, battery storage systems, and integrated charging networks.

Market dynamics are further influenced by changing consumer preferences and strategic collaborations between the public and private sectors designed to promote EV adoption. Both domestic and international companies are investing in innovative mobility solutions, while infrastructure development projects are laying the groundwork for future growth. Additionally, educational and promotional campaigns are being launched to raise public awareness about the benefits of using electric vehicles.

Key Insights

In terms of Vehicle Type, the Passenger Vehicles accounted for a major share of 80% in 2024. In the Saudi Arabia EV Market, the Passenger Vehicles segment leads in terms of vehicle types. This dominance is fueled by a growing consumer interest in sustainable personal transportation, government incentives, and increased investments in EV infrastructure, such as charging stations.

Additionally, rising urbanization and the adoption of EVs by ride-hailing services have significantly contributed to the growth of passenger EVs. Automakers are also introducing a variety of electric models designed for personal use, further accelerating the expansion of this segment. Consequently, the Passenger Vehicles segment commands the largest market share in the Saudi Arabian EV market and is expected to maintain its leadership going forward.

Market Dynamics

Drivers:

Saudi Arabia is expanding EV charging networks and manufacturing capabilities through strategic partnerships and public investments.

Saudi Arabia is actively expanding its electric vehicle (EV) charging infrastructure and enhancing local manufacturing capabilities as part of a broader strategy to boost the Saudi Arabia EV Market. With a strong emphasis on transforming the transportation sector, the country is forming strategic partnerships with global and regional companies to develop the necessary technological ecosystem. These collaborations are intended to accelerate the deployment of EV charging stations across urban areas such as Riyadh, Jeddah, and Dammam, with plans for future extensions into more remote regions.

In addition to infrastructure development, the Saudi Arabia EV Market is experiencing a push towards domestic manufacturing. The launch of Ceer, the Kingdom’s first EV brand, marks a significant milestone in this effort. Ceer, along with international ventures like Lucid Motors’ production facility in King Abdullah Economic City, underscores Saudi Arabia’s intent to establish a robust EV manufacturing base. These initiatives aim to reduce dependency on vehicle imports and create localized supply chains.

Public investments are playing a central role in the growth of the Saudi Arabia EV Market. Government entities are allocating resources toward the establishment of R&D centers, training programs for EV maintenance, and regulatory frameworks that support market adoption. The convergence of infrastructure development and manufacturing expansion not only meets local demand but also positions the Kingdom as a regional hub for EV production and innovation. These initiatives highlight Saudi Arabia’s commitment to long-term sustainable transportation and align with its broader economic diversification goals.

Despite incentives, EVs remain expensive compared to conventional vehicles due to import dependency and limited local production, affecting affordability for average consumers.

Despite various government incentives designed to promote the adoption of electric vehicles (EVs), they remain relatively expensive in Saudi Arabia compared to traditional internal combustion engine vehicles. This price disparity is largely due to the country’s reliance on imported EVs, which raises costs through shipping, customs fees, and limited economies of scale. Furthermore, the Saudi Arabia EV market is still in its early stages, with domestic production capabilities just beginning to develop.

Initiatives like Ceer and partnerships with companies such as Lucid Motors indicate progress, however, the absence of established large-scale local manufacturing keeps EV prices high. These elevated costs create challenges for average consumers, particularly those seeking affordable mobility options. To make EVs more accessible to a broader segment of the population across the Kingdom, the Saudi Arabia EV market must tackle these structural issues by enhancing local production, promoting competitive pricing, and developing a comprehensive supply chain.

Segmental Analysis

Based on Vehicle Type, Saudi Arabia EV market is segmented into Passenger Vehicles, Commercial Vehicles, Two-Wheelers.

In the Saudi Arabia EV Market, the Passenger Vehicles segment holds a dominant position due to a combination of consumer preferences, government incentives, and infrastructural expansion. With the Kingdom's strong emphasis on reducing carbon emissions and diversifying its economy beyond oil, electric passenger vehicles have emerged as a central focus. The Saudi government has introduced various measures such as customs duty exemptions, reduced registration fees, and support for EV charging infrastructure to accelerate passenger EV adoption. These policies are especially attractive to individual car buyers looking for long-term cost savings and environmentally friendly alternatives.

Urbanization and growing environmental awareness among the population have also contributed to this shift. Major cities like Riyadh and Jeddah are witnessing increasing demand for EVs as daily-use vehicles due to lower operating costs and improved battery ranges. Additionally, international automakers such as Lucid Motors and Tesla, alongside regional players, are entering the Saudi Arabia EV Market to meet the rising demand for high-performance electric passenger cars.

Infrastructure development, including the widespread installation of charging stations and smart mobility solutions, further enhances the feasibility of owning EVs in urban areas. Moreover, the rising disposable income and tech-savvy younger generation are showing a clear preference for innovative and sustainable mobility options, reinforcing the segment’s growth trajectory.

Regional Landscape

Saudi Arabia is emerging as a key player in the electric vehicle (EV) transformation in the Middle East. Government-backed initiatives and strategic investments are accelerating market growth in this sector. The Saudi EV market is experiencing a surge in interest due to the focus on economic diversification and environmental sustainability outlined in Vision 2030. As the largest economy in the Gulf Cooperation Council (GCC), Saudi Arabia wields significant regional influence, and its efforts to promote electric mobility are setting a precedent for neighboring countries.

The country is strategically investing in infrastructure, including the development of EV charging stations, clean energy grids, and localized EV manufacturing. Major cities such as Riyadh, Jeddah, and Dammam are seeing increased adoption of electric vehicles. This shift is driven by rising environmental awareness, fuel cost savings, and policy incentives like reduced customs duties and tax exemptions. The government’s partnerships with international automotive companies and support for domestic EV production highlighted by the establishment of the Lucid Motors factory are further boosting the Saudi EV market.

Moreover, public transportation electrification is gaining momentum, with initiatives such as the NEOM smart city project incorporating EVs into its design from the outset. Consumer behavior is also changing, as younger, tech-savvy demographics show a greater inclination toward sustainable transportation options.

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.