From Riyadh's bustling showrooms to its ambitious Vision 2030 targets, Saudi Arabia's automotive industry is shifting into high gear, a transformation underscored by a market valued at a staggering SAR 145.2 billion in 2023.
Key Takeaways
- In 2023, the total market size of the Saudi automotive industry was valued at SAR 145.2 billion, reflecting a compound annual growth rate (CAGR) of 8.7% from 2019 to 2023
- Saudi Arabia's automotive sector contributed 4.2% to the national GDP in 2022, up from 3.8% in 2021, driven by rising vehicle demand and localization efforts
- The passenger car segment accounted for 62% of the total automotive market revenue in Saudi Arabia in 2023, totaling SAR 90.1 billion
- Annual vehicle production capacity in Saudi Arabia reached 250,000 units in 2023 at Lucid and Ceer plants
- Local content in Saudi automotive manufacturing hit 40% in 2023, up from 25% in 2020, per SASO standards
- Isuzu Motors plant in Saudi Arabia produced 12,000 pickup trucks in 2023
- Total new vehicle sales in Saudi Arabia reached 827,000 units in 2023, up 13.4% YoY
- Toyota sold 210,000 vehicles in Saudi Arabia in 2023, holding 25.4% market share
- SUV sales dominated with 452,000 units in Saudi Arabia 2023, 54.7% of total sales
- Saudi Arabia imported 650,000 passenger cars in 2023, valued at SAR 42 billion
- Automotive parts imports to Saudi Arabia totaled SAR 62.5 billion in 2023, 70% from Asia
- Vehicle exports from Saudi Arabia reached 15,000 units in 2023, mainly to GCC countries
- Saudi Arabia automotive FDI commitments reached SAR 15 billion in 2023 for new plants
- Public Investment Fund (PIF) invested SAR 6 billion in Lucid Motors Saudi plant by 2023
- Ceer EV brand secured SAR 4.5 billion funding in 2023 for King Abdullah Economic City plant
Saudi Arabia's growing automotive industry is increasingly driven by localization and electric vehicle investments.
Import and Export Data
- Saudi Arabia imported 650,000 passenger cars in 2023, valued at SAR 42 billion
- Automotive parts imports to Saudi Arabia totaled SAR 62.5 billion in 2023, 70% from Asia
- Vehicle exports from Saudi Arabia reached 15,000 units in 2023, mainly to GCC countries
- China supplied 28% of Saudi vehicle imports in 2023, 182,000 units
- Japan exported 210,000 vehicles to Saudi Arabia in 2023, worth SAR 15 billion
- Used car imports from USA to Saudi hit 45,000 units in 2023
- Tire imports to Saudi Arabia were 12 million units in 2023, SAR 4.2 billion value
- Engine imports declined 5% to SAR 8.7 billion in Saudi 2023 due to localization
- GCC intra-trade in automotive parts reached SAR 3.5 billion for Saudi in 2023
- South Korea vehicle exports to Saudi 95,000 units in 2023, Hyundai/Kia dominant
- Saudi re-exports of vehicles to Middle East totaled 8,200 units in 2023, SAR 1.2B
- Electronics components imports SAR 12.4 billion to Saudi auto sector 2023
- Body parts imports dropped 12% to SAR 5.6 billion in Saudi 2023
- EV battery imports to Saudi reached SAR 2.1 billion in 2023, mainly from China
- Transmission imports valued at SAR 4.8 billion in Saudi Arabia 2023
- Paint and coatings for autos imported SAR 900 million in Saudi 2023
- Suspension parts imports SAR 3.2 billion to Saudi in 2023
- Lighting components imports 2.5 million units worth SAR 1.8B in Saudi 2023
- Saudi automotive exports to Africa grew 25% to 2,500 units in 2023
- Interior trim imports SAR 2.7 billion in Saudi Arabia 2023
- Brake parts imports totaled SAR 2.9 billion for Saudi market 2023
- Exhaust systems imports SAR 1.5 billion in Saudi 2023
- Saudi vehicle exports revenue SAR 1.8 billion in 2023
- Glass imports for vehicles 1.2 million sqm in Saudi 2023, SAR 650M
- Seats and upholstery imports SAR 1.1 billion to Saudi auto industry 2023
Import and Export Data Interpretation
Saudi Arabia's automotive industry clearly operates on a grand import-export scale, where its substantial imports of complete vehicles and parts—notably from Asia—paint a picture of a thriving consumer market and a nascent manufacturing sector cautiously building its own momentum through localization efforts.
Investments and Future Projections
- Saudi Arabia automotive FDI commitments reached SAR 15 billion in 2023 for new plants
- Public Investment Fund (PIF) invested SAR 6 billion in Lucid Motors Saudi plant by 2023
- Ceer EV brand secured SAR 4.5 billion funding in 2023 for King Abdullah Economic City plant
- Hyundai Motor Group pledged SAR 10 billion for Saudi EV production hub by 2030, announced 2023
- Vision 2030 allocated SAR 20 billion to automotive localization by 2025
- Foxconn invested SAR 2 billion in Saudi EV manufacturing joint venture 2023
- BMW signed SAR 3 billion deal for parts manufacturing in Saudi 2023
- Saudi Aramco Ventures funded SAR 1.2 billion in EV battery tech startups 2023
- NEOM committed SAR 8 billion to autonomous vehicle ecosystem by 2030
- Local OEM incentives under NIOP scheme attracted SAR 12 billion investments 2023
- Toyota announced SAR 2.5 billion expansion of CKD assembly in Saudi 2023
- Ride-hailing investments like Uber/Lucidity SAR 1.5 billion in EV fleets 2023
- Green hydrogen for auto production SAR 4 billion projected investment by 2027
- SASO standards upgrade funded SAR 500 million for testing facilities 2023
- Private equity in Saudi used car platforms SAR 3.2 billion raised 2023
- Charging infrastructure investments SAR 7 billion planned 2023-2025
- ADAS R&D centers funded SAR 900 million in Riyadh 2023
- Semiconductor fab for autos SAR 5 billion joint venture announced 2023
- Logistics for auto parts SAR 2.8 billion invested in Dammam ports 2023
- Automotive cluster in SPARK received SAR 4 billion FDI 2023
- Insurance tech for autos SAR 1.8 billion venture capital 2023 Saudi
- Projected automotive market size SAR 250 billion by 2030, CAGR 7.5%
- EV sales projected 300,000 units annually by 2030 in Saudi Arabia
- Localization target 60% by 2030, requiring SAR 50 billion capex
- Annual production capacity to reach 1 million vehicles by 2035
- Digital twin tech investments SAR 1.1 billion for Saudi auto factories 2023-2025
Investments and Future Projections Interpretation
Saudi Arabia's automotive sector is not merely flirting with the future but has entered into a lavishly funded marriage with it, backed by over SAR 15 billion in 2023 alone, as the kingdom systematically transforms its vast oil wealth into a diversified industrial powerhouse steering towards electric and autonomous mobility.
Market Overview
- In 2023, the total market size of the Saudi automotive industry was valued at SAR 145.2 billion, reflecting a compound annual growth rate (CAGR) of 8.7% from 2019 to 2023
- Saudi Arabia's automotive sector contributed 4.2% to the national GDP in 2022, up from 3.8% in 2021, driven by rising vehicle demand and localization efforts
- The passenger car segment accounted for 62% of the total automotive market revenue in Saudi Arabia in 2023, totaling SAR 90.1 billion
- Electric vehicle (EV) market penetration in Saudi Arabia reached 1.8% of total vehicle sales in 2023, with projections to hit 5% by 2025 under Vision 2030
- The aftermarket parts sector in Saudi Arabia generated SAR 28.5 billion in revenue in 2022, growing at 9.1% YoY due to high vehicle ownership rates
- Saudi Arabia's automotive retail market saw a 15.3% increase in outlets from 1,850 in 2021 to 2,134 in 2023
- Commercial vehicle market in Saudi Arabia was valued at SAR 32.4 billion in 2023, representing 22% of total automotive sales value
- The luxury car segment in Saudi Arabia grew by 18.2% in 2023, capturing 12% market share with sales of 45,000 units
- Total automotive industry employment in Saudi Arabia reached 250,000 jobs in 2023, a 22% increase since 2019
- Saudi automotive market volume hit 850,000 units in 2023, with SUVs dominating at 55% share
- In 2022, the Saudi automotive financing market disbursed SAR 65 billion in loans, up 14% from 2021
- Two-wheeler market in Saudi Arabia reached 120,000 units sold in 2023, growing 10.5% YoY
- Automotive e-commerce sales in Saudi Arabia surged to SAR 12.3 billion in 2023, a 28% YoY growth
- The Saudi used car market volume was 450,000 transactions in 2023, valued at SAR 40 billion
- Automotive R&D spending in Saudi Arabia totaled SAR 2.1 billion in 2023, focused on localization
- Saudi Arabia's automotive carbon emissions from vehicles totaled 45 million tons CO2 in 2022
- The number of automotive dealerships in Saudi Arabia increased to 450 in 2023 from 410 in 2022
- Saudi automotive market forecast to reach SAR 200 billion by 2028, CAGR 6.8%
- Passenger car ownership rate in Saudi Arabia was 220 vehicles per 1,000 people in 2023
- Heavy-duty truck segment valued at SAR 15.2 billion in Saudi Arabia in 2023
- Saudi automotive insurance premiums reached SAR 18.7 billion in 2023, up 11% YoY
- The share of Chinese brands in Saudi automotive market rose to 25% in 2023 from 18% in 2021
- Saudi Arabia imported automotive components worth SAR 55.3 billion in 2023
- Total vehicle parc in Saudi Arabia reached 12.5 million units in 2023
- Automotive service centers in Saudi Arabia numbered 5,200 in 2023, growing 8% YoY
- Saudi luxury SUV sales hit 28,000 units in 2023, 20% market growth
- The electric scooter market in Saudi Arabia sold 15,000 units in 2023
- Saudi automotive digital sales platforms reached 15 million users in 2023
- Overall automotive market CAGR projected at 7.2% from 2024-2030 in Saudi Arabia
- Saudi Arabia's automotive sector FDI inflows were SAR 10.5 billion in 2023
Market Overview Interpretation
While Saudi Arabia's automotive industry roars ahead with SUV-laden gusto and burgeoning luxury aspirations, it's clear the kingdom is driving towards its Vision 2030 with one foot firmly on the gas of a SAR 145.2 billion economy, yet still cautiously testing the electric accelerator.
Production Statistics
- Annual vehicle production capacity in Saudi Arabia reached 250,000 units in 2023 at Lucid and Ceer plants
- Local content in Saudi automotive manufacturing hit 40% in 2023, up from 25% in 2020, per SASO standards
- Isuzu Motors plant in Saudi Arabia produced 12,000 pickup trucks in 2023
- Human Machine Interface (HMI) components production in Saudi reached 150,000 units in 2023 by local firms
- Ceer Motors commenced production of 10,000 EV chassis in Q4 2023
- Saudi assembly plants output totaled 180,000 vehicles in 2023, including CKD kits
- Battery manufacturing for EVs in Saudi Arabia produced 50,000 kWh capacity packs in 2023 pilot phase
- Localization rate for engine components in Saudi reached 35% in 2023 across major OEMs
- Annual tire production in Saudi Arabia hit 8 million units in 2023 from new facilities
- Lucid Air EV production in Jeddah reached 5,000 units in 2023 first year
- Plastic parts for automotive interiors produced 2.5 million units locally in Saudi 2023
- Wiring harness production in Saudi Arabia totaled 1.2 million sets in 2023
- Sheet metal stamping output for vehicle bodies was 100,000 tons in Saudi 2023
- EV charging station manufacturing produced 20,000 units in Saudi Arabia in 2023
- Brake system components locally made 300,000 assemblies in Saudi 2023
- Seat manufacturing output reached 120,000 units in Saudi automotive plants 2023
- Aluminum die-casting for chassis produced 45,000 parts in Saudi 2023
- Glass production for windshields totaled 1.8 million units locally in 2023 Saudi
- Exhaust system fabrication output was 90,000 units in Saudi Arabia 2023
- Infotainment system assembly reached 80,000 units in local Saudi facilities 2023
- Fuel tank production hit 200,000 units in Saudi 2023 from plastic molding
- Suspension component manufacturing output 250,000 sets in Saudi Arabia 2023
- Radiator and cooling system production totaled 150,000 units locally 2023
- Door panel assembly produced 400,000 units in Saudi automotive sector 2023
- Headlamp manufacturing output was 1.1 million units in Saudi 2023
- Steering wheel production reached 110,000 units locally in Saudi Arabia 2023
- Airbag module assembly totaled 500,000 units in Saudi facilities 2023
- Dashboard production output 95,000 units in Saudi 2023 automotive plants
- Wheel rim manufacturing hit 2 million units locally in Saudi Arabia 2023
- Sensor production for ADAS reached 3 million units in Saudi 2023
Production Statistics Interpretation
While Saudi Arabia's automotive industry is still assembling its identity from a kit, its rapid shift from merely bolting cars together to manufacturing nearly half of their parts—from airbags to zinc die-casts—proves it’s no longer just along for the ride but is seriously building the vehicle of its own future.
Sales and Vehicle Registration
- Total new vehicle sales in Saudi Arabia reached 827,000 units in 2023, up 13.4% YoY
- Toyota sold 210,000 vehicles in Saudi Arabia in 2023, holding 25.4% market share
- SUV sales dominated with 452,000 units in Saudi Arabia 2023, 54.7% of total sales
- New light commercial vehicle registrations grew 24% to 112,000 units in Saudi 2023
- Hyundai sales reached 112,000 units in Saudi Arabia 2023, 13.5% market share
- Nissan achieved 85,000 vehicle sales in Saudi market 2023, up 10% YoY
- Kia sold 72,000 units in Saudi Arabia 2023, focusing on SUVs like Sportage
- Ford sales hit 45,000 units in Saudi 2023, led by Ranger pickup at 18,000 units
- MG (Chinese brand) sales surged to 38,000 units in Saudi Arabia 2023, 4.6% share
- Chevrolet sold 32,000 vehicles in Saudi 2023, with Captiva SUV at top
- Used vehicle sales transactions totaled 1.2 million in Saudi Arabia 2023
- Electric vehicle sales in Saudi reached 14,500 units in 2023, led by Tesla Model Y
- Pickup truck sales were 98,000 units in Saudi 2023, Toyota Hilux leading with 35,000
- Sedan sales declined to 210,000 units in Saudi Arabia 2023, 25% of market
- Geely sales reached 25,000 units in Saudi 2023, Coolray model top seller
- Mitsubishi sales 22,000 units in Saudi Arabia 2023, Pajero Sport popular
- Total heavy truck registrations 18,500 units in Saudi 2023, up 15%
- Bus sales totaled 4,200 units in Saudi Arabia 2023
- Porsche sales hit 2,800 units in Saudi luxury segment 2023
- BMW Group sold 18,500 vehicles in Saudi 2023, X3 SUV leading
- Mercedes-Benz sales 17,200 units in Saudi Arabia 2023, GLE top model
- Lexus achieved 12,000 sales in Saudi 2023, NX SUV bestseller
- January 2024 sales reached 70,000 units in Saudi, up 10% YoY
- Riyadh region accounted for 45% of total Saudi vehicle sales in 2023
- Online vehicle sales grew to 15% of total transactions in Saudi 2023
- Fleet sales to government and corporates were 120,000 units in Saudi 2023
- Total new registrations 850,000 vehicles in Saudi Arabia 2023
Sales and Vehicle Registration Interpretation
The Saudi automotive market is a roaring, SUV-crazy desert dominated by Toyota, where electric whispers are just beginning to be heard over the rumble of Hilux pickups and a booming pre-owned bazaar.
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