Introduction

The Kingdom of Saudi Arabia offers access to over 400 million buyers in the Middle East and North Africa. It is considered to be one of the largest car markets in the GCC, and one of the most promising and fastest growing markets in the region. The Kingdom is in the spotlight of being the regional hub of car production with over 1million light vehicle sales annually in the GCC. Furthermore, Saudi Arabia’s strategic central location between Europe, Africa and Asia, gives it the advantage to serve a wider range of around 2 billion customers. In line with Vision 2030, the automotive sector is the kingdom’s prioritized key revenue generator and this creates opportunities for international companies to invest in the Kingdom since the Saudi government is seeking to develop a domestic automobile industry.

Industry Insights

Global insights

China produced 25.7M vehicles with a Revenue of $214.9B

7.2M electric cars were sold globally in 2019

USA produced 10.8M vehicles with a revenue of $287B

More than 500 public EV chargers are already installed in the Middle East

Japan produced 9.6M vehicles with a revenue of $280B

By 2026 global turnover of the industry is estimated to be around $2.41Trn

Local Insights

5th largest export market for U.S passenger vehicles and light trucks in the world

533,000 cars were sold in 2019 showing an increase in sales of light vehicles by 29%

The largest market in the automotive industry within the Middle East, estimated as 40% of all vehicles sold in the area

$20.8 billion is the projected market value by 2023, with a CAGR of 7.5%

+11 million cars are on the roads in the Kingdom

The PIF made an investment agreement in 2018 with Lucid Motor worth $1billion to enable commercial launch