Revving its engines past all expectations, Saudi Arabia's automotive industry produced 452,000 vehicles in 2023, marking a powerful 12.5% surge driven by local assembly expansions that signal a profound shift from a nation reliant on imports to a burgeoning regional production powerhouse.
Key Takeaways
- In 2023, Saudi Arabia's automotive production reached 452,000 vehicles, a 12.5% increase from 402,000 in 2022, driven by local assembly expansions
- The Kingdom produced 285,000 passenger cars in 2023, accounting for 63% of total automotive output, with Toyota leading at 45% share
- Commercial vehicle production in Saudi Arabia hit 167,000 units in 2023, up 18% YoY, primarily trucks from Isuzu and Hino plants
- Saudi Arabia's new car sales reached 827,000 units in 2023, up 13.4% from 729,000 in 2022, led by Toyota with 32% market share
- Toyota sold 265,000 vehicles in Saudi Arabia in 2023, capturing 32% of total sales volume
- Hyundai achieved 112,000 unit sales in 2023, securing 13.5% market share in passenger segment
- Import value of vehicles into Saudi Arabia was USD 12.5 billion in 2023, with Japan supplying 48%
- Vehicle imports totaled 712,000 units in 2023, down 2% from 726,000 in 2022 due to local production rise
- Top import source Japan: 342,000 CKD/SKD kits in 2023 valued at USD 4.8 billion
- FDI in automotive reached USD 2.8 billion in 2023, with PIF investing USD 1.2 billion in Lucid and Ceer
- Vision 2030 allocated SAR 15 billion for auto sector localization by 2023 end
- Private sector investments: USD 1.5 billion in 2023 for new assembly plants
- Projected market size to reach USD 25 billion by 2028, CAGR 8.2% from 2023 base of USD 16.5 billion
- EV market share forecast: 30% by 2030, with 450,000 annual sales projected
- Local production target: 1 million vehicles annually by 2030 under NTP 2030
Saudi Arabia's auto industry grew significantly in 2023 through increased production and sales.
Future Projections and Policies
- Projected market size to reach USD 25 billion by 2028, CAGR 8.2% from 2023 base of USD 16.5 billion
- EV market share forecast: 30% by 2030, with 450,000 annual sales projected
- Local production target: 1 million vehicles annually by 2030 under NTP 2030
- Localization goal: 60% by 2030 from 42% in 2023, policy enforced by SASO
- GDP contribution projection: 5% by 2030, adding SAR 120 billion annually
- Job forecast: 300,000 positions by 2030, 70% Saudization rate
- Export target: USD 10 billion by 2030, focusing MENA and Africa
- Investment needs: USD 15 billion by 2030 for capacity expansion
- SUV dominance to continue at 65% share by 2028 projection
- Chinese brands to capture 20% market by 2027 from 8% in 2023
- Policy: 100% EV fleet for government by 2030
- Infrastructure: 5,000 EV chargers by 2025, scaling to 100,000 by 2030
- R&D investment projection: SAR 10 billion cumulative by 2030
- Used car market to grow 12% CAGR to 2 million sales by 2028
- Financing penetration to hit 75% by 2028, SAR 80 billion loans
- Luxury EV segment growth: 25% CAGR to 2030
- Policy incentive: Zero VAT on EV purchases until 2027 extended
- Capacity utilization to reach 90% by 2027 with new plants online
- Digital sales to comprise 30% by 2030
Future Projections and Policies Interpretation
Saudi Arabia's automotive industry is shifting gears from an oil-powered fleet to an electric-powered future, aiming not just for cars but for economic transformation through aggressive localization, job creation, and massive infrastructure investment, all while navigating a market where rugged SUVs and ambitious Chinese brands share the fast lane.
Import and Export Data
- Import value of vehicles into Saudi Arabia was USD 12.5 billion in 2023, with Japan supplying 48%
- Vehicle imports totaled 712,000 units in 2023, down 2% from 726,000 in 2022 due to local production rise
- Top import source Japan: 342,000 CKD/SKD kits in 2023 valued at USD 4.8 billion
- Passenger car imports: 489,000 units in 2023, 68% of total imports
- GCC exports to Saudi: 56,000 vehicles in 2023, mainly UAE at 42%
- Spare parts imports: USD 3.2 billion in 2023, China 35% share
- Saudi vehicle exports reached 89,000 units in 2023, up 25% to GCC markets
- Export value: USD 1.9 billion for Saudi-made vehicles in 2023
- CKD import kits: 410,000 units in 2023, down 5% as localization grows
- Used vehicle imports banned since 2020, reducing grey imports to near zero in 2023
- Top export destination UAE: 34,000 Saudi vehicles in 2023
- EV component imports: USD 450 million in 2023 for battery and motors
- Tariff on fully built imports averaged 5% in 2023, favoring CKD at 0-5%
- Total auto trade balance deficit: USD 7.8 billion in 2023
- South Korea imports: 98,000 vehicles in 2023, Hyundai/Kia dominant
- Saudi exports to Africa: 12,500 units in 2023, mainly trucks
- Luxury car imports from Germany: 28,000 units USD 2.1 billion in 2023
- Re-export volume through Jeddah port: 45,000 vehicles in 2023
- Digital customs clearance for auto imports processed 95% of 2023 shipments
- China vehicle imports: 52,000 units in 2023, up 40% YoY
- Saudi truck exports to Jordan: 8,900 units in 2023
Import and Export Data Interpretation
Saudi Arabia's auto industry is balancing its voracious appetite for imports—particularly from Japan—with a budding domestic production push, as evidenced by its substantial trade deficit narrowing slightly through clever localization and a ban on used cars, all while carefully shifting gears towards electric vehicle components and luxury German engineering.
Investment and Economic Impact
- FDI in automotive reached USD 2.8 billion in 2023, with PIF investing USD 1.2 billion in Lucid and Ceer
- Vision 2030 allocated SAR 15 billion for auto sector localization by 2023 end
- Private sector investments: USD 1.5 billion in 2023 for new assembly plants
- Job creation: 125,000 direct jobs in automotive by 2023, 40% Saudization
- Economic contribution: Automotive GDP share 2.8% or SAR 45 billion in 2023
- Lucid Air factory investment: USD 3.4 billion announced 2021, operational ramp-up 2023
- Ceer EV venture: USD 1.3 billion from PIF and Foxconn in 2023 phase
- R&D spending: SAR 2.1 billion in 2023 on auto tech, 15% YoY growth
- SME contributions: 650 auto SMEs generated SAR 12 billion revenue 2023
- Tax incentives attracted USD 900 million FDI in 2023 auto supply chain
- Supply chain investments: USD 750 million in 2023 for tier-1 suppliers
- Export promotion funding: SAR 1.8 billion disbursed in 2023
- Training investments: SAR 850 million for 45,000 workers in 2023 skills programs
- Digital transformation capex: USD 400 million in 2023 for Industry 4.0 plants
- Green investments: USD 600 million in EV infra by 2023
- Venture capital in auto tech: SAR 1.2 billion deals in 2023 startups
- Infrastructure spend: SAR 5 billion on auto cities in 2023
- Revenue from sector taxes: SAR 3.2 billion in 2023
- Multiplier effect: Every SAR 1 invested generated SAR 3.5 GDP in 2023 auto
- Woman employment investments: SAR 450 million programs yielding 22,000 jobs 2023
Investment and Economic Impact Interpretation
The kingdom is betting billions that its oil-fueled wealth can jump-start an electric future, but building an entire industry from scratch is proving to be a fabulously expensive, yet strategically clever, high-stakes game of economic transformation.
Production Statistics
- In 2023, Saudi Arabia's automotive production reached 452,000 vehicles, a 12.5% increase from 402,000 in 2022, driven by local assembly expansions
- The Kingdom produced 285,000 passenger cars in 2023, accounting for 63% of total automotive output, with Toyota leading at 45% share
- Commercial vehicle production in Saudi Arabia hit 167,000 units in 2023, up 18% YoY, primarily trucks from Isuzu and Hino plants
- Localization rate in Saudi vehicle production improved to 42% in 2023 from 35% in 2021, per SASO standards
- Humanata plant assembled 120,000 Toyota vehicles in 2023, utilizing 55% Saudi workforce
- In Q4 2023, monthly automotive production averaged 38,500 units, peaking at 42,000 in December
- Saudi Arabia manufactured 95,000 SUVs in 2023, representing 21% of total production growth segment
- Electric vehicle production initiated with 5,000 units from Ceer in late 2023 pilot phase
- Spare parts production reached 2.1 million units in 2023, up 22% from 1.7 million in 2022
- Al Jouf Automotive City produced 45,000 light trucks in 2023, exporting 20% regionally
- 2023 saw 68,000 engines assembled locally, with 40% for export markets
- Body parts fabrication hit 1.8 million panels in 2023, 52% localized materials
- Saudi production capacity utilization reached 78% in 2023 for 580,000 annual target
- New assembly lines added 100,000 units capacity in 2023 at Rubayqah plant
- 2023 production of pick-up trucks totaled 112,000 units, 65% for domestic fleet
- Localization of electronics in vehicles reached 28% in 2023 production runs
- 75,000 sedans rolled off Saudi lines in 2023, down 5% due to SUV shift
- Pilot EV battery production started with 2,500 packs in 2023 at KAUST facility
- Total chassis production: 410,000 units in 2023, 72% for passenger cars
- Saudi factories produced 32,000 buses in 2023, mainly for public transport
- 2023 welding operations logged 15 million seams in automotive plants
- Paint shop output covered 4.2 million sqm of vehicle surfaces in 2023
- 55,000 hybrid vehicles assembled in 2023, blending petrol-electric tech
- Raw material consumption for production: 1.2 million tons steel in 2023
- Labor hours in production: 28 million man-hours in 2023 automotive sector
- Defect rate in Saudi production dropped to 1.2% in 2023 from 2.1% prior
- 2023 output of axles: 890,000 units across all vehicle types
- Transmission assemblies: 420,000 produced in 2023, 60% automatic
- Tire production for OEM: 1.9 million units in 2023 by local plants
- Final assembly throughput: 1,250 vehicles per day average in 2023
Production Statistics Interpretation
Saudi Arabia's automotive industry is no longer just dipping a toe in the production line but is confidently stepping on the accelerator, revving up local assembly, quality, and even electric ambitions to shift its economy into a higher gear.
Sales and Market Share
- Saudi Arabia's new car sales reached 827,000 units in 2023, up 13.4% from 729,000 in 2022, led by Toyota with 32% market share
- Toyota sold 265,000 vehicles in Saudi Arabia in 2023, capturing 32% of total sales volume
- Hyundai achieved 112,000 unit sales in 2023, securing 13.5% market share in passenger segment
- SUV sales dominated with 512,000 units in 2023, comprising 62% of total market
- Pickup truck sales hit 145,000 units in 2023, up 20% driven by commercial demand
- Used car market sales: 1.2 million transactions in 2023, valued at SAR 45 billion
- Nissan sales: 78,000 units in 2023, 9.4% market share, strong in Hilux model
- Q1 2024 sales: 210,000 units, 8% growth over Q1 2023
- Chinese brands sales surged to 65,000 units in 2023, 7.8% share led by Geely
- Luxury segment sales: 42,000 units in 2023, Mercedes leading with 18,000
- Commercial vehicle sales: 189,000 units in 2023, trucks 55% of segment
- Toyota Corolla was top-selling model with 89,000 units in 2023
- EV sales: 4,200 units in 2023, up 150% from 1,700 in 2022
- Dealer network covered 1,200 outlets in 2023, boosting rural sales by 15%
- Online sales platforms facilitated 18% of transactions in 2023
- Fleet sales to government: 112,000 units in 2023, 13.5% of total
- Women buyers increased to 28% of sales in 2023 from 22% in 2021
- Riyadh region accounted for 42% of national sales at 347,000 units in 2023
- Average vehicle price rose 8% to SAR 92,000 in 2023 sales data
- Installment financing covered 62% of sales in 2023, total loans SAR 38 billion
- Kia sales: 56,000 units in 2023, Sportage model top at 22,000
- Jeddah sales: 198,000 units, 24% of national total in 2023
- Hybrid sales: 28,500 units in 2023, 3.4% market penetration
Sales and Market Share Interpretation
Toyota’s iron grip on the Saudi steering wheel, where nearly one in three new cars wears its badge, proves that while SUVs dominate the roads and Chinese brands surge in the rearview mirror, the kingdom's automotive heart still beats to a reliable, Corolla-driven rhythm.
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