Saudi Arabia Electric Vehicle Market size is projected to grow at a CAGR of 42.5% during 2021-2027

Passenger cars acquired the largest market revenue share in the Saudi Arabia electric vehicle market – 6Wresearch

The government of Saudi Arabia decided to adopt non-oil economy as a part of its “Vision 2030” and is encouraging multiple international firms to invest in its non-oil sectors. The country aims to diversify its non-oil exports and increase its share in the non-oil GDP from 16% to 50% in 2030. The transportation sector of Saudi Arabia has highest oil consumption which is 25% of total energy consumption hence the government is planning to reduce the oil dependency by encouraging green transport. Thus, the electric vehicle market would thrive in the coming years in Saudi Arabia. The Government of Saudi Arabia is determined to reduce its GHG emissions under its “Vision 2030” by replacing Internal Combustion Engines (ICE) with electric vehicles. It also stated that at least 30% of cars in Riyadh would be electric cars by 2030. As the percentage of consumption of renewable energy increases in Saudi Arabia, it will lead to enhanced opportunities in electric vehicle’s segment. Thus, the development of renewable energy sector would be invigorating for the electric vehicle industry in Saudi Arabia.

According to 6Wresearch, Saudi Arabia Electric Vehicle Market size is projected to grow at a CAGR of 42.5% during 2021-2027. Saudi Arabia electric vehicle market is in the initial stage of industry life cycle. The market would continue to climb up owing to the focus of government on sustainable transportation and renewable energy. The initiation of electric vehicle penetration in KSA enables it to be on a track to diversify its economy by decreasing its dependence on oil. In the coming years, government initiatives and strengthening charging infrastructure would further augment the demand for electric vehicles in Saudi Arabia. As a clean, zero-emissions mode of transport, EVs are expected to gain popularity in the future in the country. Saudi Arabia has been taking serious steps to boost its EV sector as it is a fundamental part of its Vision 2030 program which aim to reduce carbon emissions, combat pollution and land degradation, and preserve nature

 According to Chhavi Malpani, Assistant Manager, 6Wresearch, “Within by vehicle types, passenger cars are projected to show significant growth during the forecast period owing to the growing population that suggest a long-term potential in electric vehicle segment attributed to the rising disposable income of households and lower emissions targets set by the government.”

 According to Ananya Consul, Research Associate, 6Wresearch, “Central region dominated the Saudi Arabia electric vehicle market in 2020 which include Riyadh, Jeddah including many more populous cities followed by the Eastern region. Saudi Arabia may choose to start building EV infrastructure in the eastern region in the initial stages of deployment since the eastern region is powered by gas, which is considerably less carbon-emitting compared to liquid fuels.”

Some of the major companies in Saudi Arabia electric vehicle market include Nissan Motor Co, Ltd., Tesla, Inc., Hyunda, Motor Company, Toyota Motor Corporation, The Volkswagen AG, General Motors Company, Lucid Group, Inc.,

“Saudi Arabia Electric Vehicle market (2021-2027)” report provides an in-depth analysis with 13 figures and 03 tables, covered in 70 pages. The report estimates and forecast the overall Saudi Arabia electric vehicle market by vehicle types and regions. The report provides an unbiased and detailed analysis of the on-going trends, opportunities/high growth areas and market drivers which would help the stakeholders to devise and align their market strategies according to the current and future market dynamics.