More Saudi car buyers are in the mood to give EVs a chance with more dealerships in the Kingdom set to announce tie ups with leading Chinese carmakers to speed up the process.
After what seems like a long gestation period, Tesla finally opened its first outlet in April, while Saudi-backed luxury EV brand Lucid Motors has done some of the preparatory work in creating a conducive environment for non-fuel automotive options.
But as happened in UAE, a range of Chinese-made EVs are set to be introduced in the Gulf’s biggest car market over the coming months. (In the UAE, more than 10 Chinese EV brands made their debut starting late 2023/early 2024 and until now, and many of them have started to pick up buyer backing for them.)
By end 2024, new car registrations of EVs in the UAE made up around 4%-5%, according to estimates – in Saudi Arabia, it was 1% of new car sales.
“Saudi banks are starting to offer favourable EV auto financing options, and dealers are working with insurers to come up with buyer-friendly packages,” said a dealer source. “The UAE auto market created the blueprint to launch and push new EV brands. It can easily be replicated in a market like Saudi Arabia.”
The Saudi car market is expected to account for 600,000 plus units a year by the end of the decade. If EV sales can make up 10%-15% by then, the game is on, say auto analysts.
“The EV penetration in Saudi Arabia is relatively low compared to UAE,” said Vishal Pandey, Director of Dubai-based Glasgow Consultancy Group. “However, given the emphasis from Saudi Government on electrification, there is high likelihood that growth is going to be faster.
“There is still a perception issue among Saudi consumers in regards to EVs, as they are concerned about the high cost of acquisition, charging infrastructure, and the after-market service. Plus, there is also the resale value.”
