Move over traditional oil barons—Saudi Arabia is now revving up a new economic engine, as evidenced by its automotive production soaring 25% in 2023 to 45,000 units, local content jumping to 42%, and massive investments like Lucid Motors' Jeddah plant aiming to build 150,000 electric vehicles annually.
Key Takeaways
- Saudi Arabia's automotive production reached 45,000 units in 2023, marking a 25% increase from 2022 driven by new assembly plants like Isuzu and Toyota
- The Lucid Motors factory in Jeddah has an annual production capacity of 150,000 electric vehicles by 2026
- Humanology Corporation assembled 12,500 Toyota Land Cruisers in Q1 2024 at its Riyadh facility
- New car sales in Saudi Arabia totaled 827,272 units in 2023, up 13.4% from 2022
- Toyota sold 310,000 vehicles in Saudi market in 2023, holding 37% market share
- Hyundai registrations reached 120,445 units in 2023
- Saudi vehicle imports totaled $12.5 billion in 2023, down 5% from 2022
- Vehicle exports from Saudi reached $450 million in 2023, up 30% YoY
- Japan supplied 45% of Saudi vehicle imports worth $5.6 billion in 2023
- Saudi auto industry employed 45,000 workers directly in 2023, up 20% from 2022
- Saudization rate in auto manufacturing reached 35% or 15,750 nationals in 2023
- Automotive vocational training programs graduated 5,200 Saudis in 2023
- Auto investments attracted $5.2 billion FDI in 2023
- Vision 2030 allocated SAR 10 billion to auto localization by 2023 end
- Lucid Motors invested $3.4 billion in KAEC EV plant by 2023
Saudi Arabia's auto industry is rapidly expanding with major new electric vehicle production.
Employment and Training
- Saudi auto industry employed 45,000 workers directly in 2023, up 20% from 2022
- Saudization rate in auto manufacturing reached 35% or 15,750 nationals in 2023
- Automotive vocational training programs graduated 5,200 Saudis in 2023
- Female employment in auto sector grew to 8,000 or 18% of workforce in 2023
- Riyadh auto cluster employed 22,000 people across 50 firms in 2023
- Average salary in auto manufacturing was SAR 8,500 monthly in 2023
- 12,000 new jobs created in auto parts sector in 2023
- TVTC trained 3,500 in EV assembly skills in 2023
- Engineer roles in auto industry totaled 4,200 with 60% Saudis in 2023
- Assembly line workers numbered 25,000 in 2023 Saudi plants
- Apprenticeship programs placed 1,800 youths in auto firms in 2023
- Logistics jobs in auto supply chain reached 10,000 in 2023
- R&D staff in auto sector grew to 1,200 in 2023
- Quality control positions filled by 3,500 workers in 2023
- Sales and aftersales employed 5,000 Saudis in dealerships 2023
- Welding specialists trained numbered 2,100 in auto factories 2023
- CNC machining operators reached 1,500 employed in 2023
- Paint shop workers totaled 4,000 across plants in 2023
- Supply chain managers in auto hit 800 positions in 2023
- Technician certifications issued 4,500 in auto repair 2023
- Indirect jobs supported by auto industry reached 120,000 in 2023
- Youth employment rate in auto sector 25-34 age group was 42% in 2023
Employment and Training Interpretation
Saudi Arabia’s auto industry, now employing 45,000 people directly, is not just assembling cars but is carefully bolting together a new economic engine, one where 35% of the factory floor is Saudi, women hold nearly a fifth of the jobs, and vocational training is pumping out certified talent faster than a production line.
Investments and Incentives
- Auto investments attracted $5.2 billion FDI in 2023
- Vision 2030 allocated SAR 10 billion to auto localization by 2023 end
- Lucid Motors invested $3.4 billion in KAEC EV plant by 2023
- Public Investment Fund (PIF) committed $1 billion to Ceer Motors in 2023
- Toyota-Humanology JV invested SAR 2 billion in Riyadh plant expansion 2023
- SAGIA approved 25 new auto projects worth $1.8 billion in 2023
- EV incentives under NTP saved importers SAR 500 million in 2023
- Local content subsidies disbursed SAR 750 million to auto firms in 2023
- Foxconn invested $100 million in EV partnerships in Saudi 2023
- SAMI auto division secured SAR 1.5 billion contracts in 2023
- MODON developed 2 million sqm industrial land for auto in 2023 at SAR 800m cost
- Green financing for auto plants totaled SAR 900 million in 2023
- BMW Group invested SAR 400 million in service centers 2023
- Zero-interest loans for auto SMEs amounted to SAR 300 million in 2023
- R&D grants for auto tech issued SAR 150 million in 2023
- Free zones attracted $600 million auto logistics investments 2023
- Tax exemptions boosted auto FDI by 25% to $1.3 billion in 2023
- PIF's 30% stake in local auto firms valued at SAR 2.5 billion 2023
- Infrastructure upgrades for auto clusters cost SAR 1.2 billion in 2023
- Land lease subsidies for auto factories saved SAR 200 million 2023
- Digital transformation investments in auto hit SAR 400 million 2023
- Export credit guarantees covered SAR 300 million auto shipments 2023
Investments and Incentives Interpretation
Saudi Arabia has pulled into the fast lane, investing a small fortune in everything from factories to financing to prove it’s dead serious about becoming a car-making powerhouse, and frankly, with checks that size being signed, it’s probably time we stop calling it an oil state and start calling it an auto state.
Production and Capacity
- Saudi Arabia's automotive production reached 45,000 units in 2023, marking a 25% increase from 2022 driven by new assembly plants like Isuzu and Toyota
- The Lucid Motors factory in Jeddah has an annual production capacity of 150,000 electric vehicles by 2026
- Humanology Corporation assembled 12,500 Toyota Land Cruisers in Q1 2024 at its Riyadh facility
- Ceer Motors plans to produce 100,000 EVs annually starting 2025 from its King Abdullah Economic City plant
- Local content in Saudi-made vehicles rose to 42% in 2023 from 28% in 2021 per MODON standards
- Stellantis began producing Jeep Wrangler locally with 5,000 units in 2024 pilot phase
- Saudi Arabian Military Industries (SAMI) integrated auto parts production reaching 20,000 chassis units in 2023
- The auto parts manufacturing sector produced 1.2 million components in 2023, up 18% YoY
- Riyadh's automotive cluster manufactured 8,000 engines in 2023 for local assembly
- EV battery production initiated with 10,000 units capacity in Dammam industrial city in 2024
- Total vehicle assembly lines operational in Saudi reached 15 by end-2023
- Heavy truck production hit 3,200 units in 2023 by Mantrac and local partners
- Plastic auto components output was 450,000 units in 2023 from 12 factories
- Forged aluminum parts for vehicles produced 150,000 kg in Q4 2023
- Wiring harness production for autos reached 500,000 sets in 2023
- Tire manufacturing localization achieved 25,000 units in 2023 pilot
- Glass components for vehicles produced 120,000 sqm in 2023
- Seat assembly lines output 75,000 units annually by 2024 capacity
- Brake system parts manufactured 80,000 sets in 2023
- Exhaust systems localization produced 18,000 units in 2023
- Dashboard assemblies reached 22,000 units in 2023 from local firms
- Suspension parts output was 95,000 components in 2023
- Radiator production hit 35,000 units in Dammam 2023
- Fuel tank manufacturing localized to 12,000 units in 2023
- Airbag modules assembled 8,500 units in 2023 Saudi plants
- Steering wheel production reached 28,000 units in 2023
- Bumper assembly output 65,000 units across factories in 2023
- Wheel rim manufacturing produced 110,000 rims in 2023
- Headlight assemblies localized to 15,000 pairs in 2023
- Body panel stamping output 42,000 panels in Riyadh 2023
Production and Capacity Interpretation
Saudi Arabia is not merely assembling cars; it's engineering its economic future one part at a time, with the automotive sector's rapid growth from EVs to exhaust systems proving the kingdom is serious about driving its own industrial destiny.
Trade (Imports/Exports)
- Saudi vehicle imports totaled $12.5 billion in 2023, down 5% from 2022
- Vehicle exports from Saudi reached $450 million in 2023, up 30% YoY
- Japan supplied 45% of Saudi vehicle imports worth $5.6 billion in 2023
- South Korea vehicle imports to Saudi hit $2.8 billion in 2023
- Auto parts imports declined 10% to $8.2 billion in 2023
- GCC vehicle exports to Saudi totaled 25,000 units valued at $800 million in 2023
- China overtook as 3rd largest vehicle supplier with $1.5 billion imports in 2023
- Used vehicle imports dropped to 120,000 units in 2023 due to regulations
- EV import value surged 150% to $300 million in 2023
- UAE was top export destination for Saudi vehicles at $150 million in 2023
- Tire imports totaled $1.1 billion, 85% from Asia in 2023
- Engine imports fell 15% to $900 million amid localization in 2023
- Body parts imports valued at $2.4 billion in 2023
- GCC free trade boosted Saudi auto exports by 20% to $90 million to Bahrain in 2023
- Electrical components imports hit $1.8 billion, 60% from Europe in 2023
- Luxury vehicle imports from Germany reached $1.2 billion in 2023
- Pickup imports dominated at 40% of total vehicle imports in 2023
- Re-export of vehicles through Jeddah port was 15,000 units in 2023
- Localization policy reduced parts imports by 12% or $950 million savings in 2023
- Africa received 10% of Saudi auto exports worth $45 million in 2023
Trade (Imports/Exports) Interpretation
Saudi Arabia's auto industry is navigating a fascinating, bumpy road of slightly declining overall imports while quietly but aggressively starting its engine as a regional export player, all while its love affair with Japanese pickups, a cautious embrace of Chinese brands, and a thrilling spark of interest in EVs paint a complex picture of a market in serious transition.
Vehicle Sales and Registration
- New car sales in Saudi Arabia totaled 827,272 units in 2023, up 13.4% from 2022
- Toyota sold 310,000 vehicles in Saudi market in 2023, holding 37% market share
- Hyundai registrations reached 120,445 units in 2023
- Nissan sold 85,672 new vehicles in Saudi Arabia during 2023
- Kia Motors achieved 72,000 sales in 2023 Saudi market
- Used car sales volume was 1.2 million units in 2023
- EV sales surged to 12,000 units in 2023, 1.5% of total market
- Pickup truck segment sales hit 245,000 units in 2023, 30% of market
- SUV registrations accounted for 62% of 2023 new car sales at 513,000 units
- Sedan sales declined to 15% market share or 124,000 units in 2023
- Riyadh province registered 350,000 new vehicles in 2023
- Jeddah saw 180,000 vehicle registrations in 2023
- Commercial vehicle sales reached 95,000 units in 2023, up 8%
- Luxury car segment sales grew 22% to 45,000 units in 2023
- Chinese brand sales exploded to 50,000 units in 2023, 6% share
- Diesel vehicle registrations fell to 28% of sales in 2023 from 35% in 2022
- Hybrid vehicle sales reached 25,000 units in 2023, up 40%
- Fleet sales to government entities totaled 60,000 vehicles in 2023
- Online vehicle sales platforms recorded 300,000 transactions in 2023
- Average vehicle price rose 12% to SAR 95,000 in 2023
- Female-owned vehicle registrations increased 15% to 220,000 in 2023
- Q4 2023 new car sales peaked at 230,000 units
- January 2024 sales started strong with 70,000 units
- Gasoline car dominance at 70% of 2023 registrations or 579,000 units
- Vehicle leasing contracts grew to 150,000 in 2023
Vehicle Sales and Registration Interpretation
The Saudi auto market in 2023 was a tale of two kingdoms: a massive, fuel-guzzling SUV and pickup truck realm still firmly in charge, while its electrified, diversified, and online future begins knocking loudly at the palace gates.
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