Report Overview

Saudi Arabia Automotive Retail Market – Industry Trends & Forecast Report, 2031

Saudi Arabia Automotive Retail Market size was estimated at USD 20.16 billion in 2024. During the forecast period between 2025 and 2031, Saudi Arabia Automotive Retail Market size is projected to grow at a CAGR of 17.5% reaching a value of USD 62.33 billion by 2031. Prominent drivers of the market include robust government initiatives, rising consumer spending, and technological innovation. The Kingdom’s Vision 2030 is playing a pivotal role in reducing oil dependency and driving industrial diversification, with over USD 5 billion invested in domestic automotive manufacturing through collaborations with global firms such as Lucid Motors and Hyundai. The country aims to produce over 300,000 vehicles annually by 2025, creating more than 27,000 jobs. A growing middle class with average disposable incomes of around USD 25,000 per year is boosting demand for new vehicle purchases. The market is also seeing increased interest in electric and hybrid vehicles, driven by the Saudi Green Initiative’s target of reducing carbon emissions by over 130 million tons by 2030. Plans to install 5,000 EV charging stations by 2025 and the surge in EV sales—from 500 units in 2020 to over 5,000 in 2023—reflect this transition. Additionally, rapid e-commerce growth, valued at over USD 8 billion in 2023, is fueling demand for light commercial vehicles, with over 70,000 units sold to support delivery services. Relaxed import regulations are widening consumer choices, while the influx of over 10 million annual tourists and pilgrims continues to drive growth in the commercial vehicle segment.

Automotive Retail – Overview

Automotive retail refers to the sale of motor vehicles and related services directly to consumers through various distribution channels such as franchised dealerships, independent dealers, and online platforms. It includes the sale of new and used vehicles, spare parts, accessories, and after-sales services like maintenance and repair. The sector also covers vehicle leasing, rentals, and financing options. Automotive retail plays a crucial role in the overall automotive industry by connecting manufacturers with end-users, shaping consumer preferences, and driving innovation in customer service, digital sales platforms, and electric vehicle adoption. It is a key indicator of economic and mobility trends.

Saudi Arabia Automotive Retail Market

Growth Drivers

Vision 2030 and Government’s Supportive Initiatives

Saudi Arabia Automotive Retail Market is undergoing a significant transformation driven by Vision 2030 and government-led initiatives focused on economic diversification and reducing dependence on oil revenues. Central to this transformation is the government's substantial investment—over USD 5 billion—in building a robust automotive manufacturing ecosystem through strategic partnerships with global players such as Lucid Motors and Hyundai. These collaborations enable the transfer of advanced technologies, enhance local production capabilities, and position Saudi Arabia as a key regional and global player in sustainable and electric vehicle manufacturing. The National Industrial Strategy and the Automotive Cluster aim to produce over 400,000 passenger vehicles annually by 2030 and achieve a Local Gross Value Add (LGVA) of 40%, boosting domestic production, job creation, and export potential. Holding a 37% share of the MENA automotive market, the Kingdom's strategic location and investment in cutting-edge infrastructure make it a hub for automotive innovation and trade. Strategic partnerships are essential for driving technological advancement, improving supply chain efficiency, and navigating a competitive global landscape. These alliances are also vital for expanding into emerging sectors like electric vehicles, autonomous mobility, and clean transportation. However, challenges remain, including the need for a mature local supply chain and a skilled workforce proficient in both traditional and modern automotive technologies. To overcome these hurdles, the government is investing in talent development and ecosystem support. Recent collaborations, particularly with Chinese firms in advanced vehicle manufacturing, reinforce Saudi Arabia's ambition to lead in sustainable mobility and automotive innovation, underscoring the crucial role of Vision 2030 and government initiatives in shaping the future of the Kingdom’s automotive retail sector.

Challenges

Fluctuating Oil Prices and Economic Sensitivity

Fluctuating oil prices and economic sensitivity present significant challenges to the growth of Saudi Arabia Automotive Retail Market. As the Kingdom heavily depends on oil exports for economic stability, volatility in oil prices directly impacts consumer confidence and spending power. Economic downturns or price instability can reduce disposable incomes, affecting vehicle sales, particularly in the luxury and non-essential vehicle segments. Additionally, fluctuations in oil prices influence fuel costs, which in turn affect consumer preferences toward fuel-efficient and electric vehicles. These economic sensitivities hinder consistent growth, making the automotive retail market vulnerable to external global market shifts and domestic economic conditions.

Impact of Escalating Geopolitical Tensions on Saudi Arabia Automotive Retail Market

Escalating geopolitical tensions can significantly impact the growth of Saudi Arabia Automotive Retail Market by creating economic uncertainty and affecting consumer confidence. Political instability or conflicts in key regions can disrupt global supply chains, leading to shortages in vehicle parts and delayed deliveries. Increased oil prices, often a consequence of geopolitical instability, can reduce disposable incomes and influence consumer spending on vehicles. Additionally, foreign investment might decrease due to the perceived risks, limiting the potential for growth and innovation in the automotive sector. As a result, the market may face slower growth and increased challenges in maintaining a competitive edge.

Saudi Arabia Automotive Retail Market

Segmental Coverage

Saudi Arabia Automotive Retail Market – By Vehicle Type

Based on vehicle type, Saudi Arabia Automotive Retail Market is bifurcated into Passenger Cars and Commercial Vehicles segments. The passenger cars segment holds a larger share of Saudi Arabia Automotive Retail Market by vehicle type. Passenger cars, typically designed to seat two to five passengers, are favored for their comfort, convenience, and advanced features such as air conditioning, infotainment systems, and power windows. These attributes contribute to the segment’s growth. Sedans, the most prevalent body type, are particularly popular, featuring four doors and a separate trunk, further driving the demand within the automotive retail market.

Saudi Arabia Automotive Retail Market – By Propulsion Type

Saudi Arabia Automotive Retail Market by propulsion type is split into Internal Combustion Engine and Electric Vehicles segments. The electric vehicles segment is expected to hold a higher share in Saudi Arabia Automotive Retail Market by propulsion type. As demand for EVs grows, automotive retailers are expanding their networks with dedicated EV showrooms and charging infrastructure. Several automakers are establishing exclusive EV dealerships to meet the specific needs of EV customers, offering specialized services and expertise. Additionally, the expansion of both public and private charging networks is making EV ownership more accessible and convenient, furthering sales. This shift reflects the broader move toward sustainability in the automotive industry, highlighting the increasing importance of catering to the EV market.

Saudi Arabia Automotive Retail Market – By Sales Channel

On the basis of sales channel, Saudi Arabia Automotive Retail Market is segmented into Franchised Dealerships, Independent Dealers, and Online Platforms segments. The franchised dealerships segment holds the highest share in Saudi Arabia Automotive Retail Market by sales channel. Traditional dealerships continue to dominate, significantly outperforming online retail platforms. With hundreds of authorized dealerships across the country, they offer a personalized, tangible buying experience that resonates with Saudi consumers. Customers appreciate the ability to inspect vehicles, take test drives, and receive immediate assistance from knowledgeable sales staff. Dealerships also benefit from Saudi cultural preferences, which emphasize face-to-face interactions and trust-building. Additionally, dealerships offer comprehensive services such as financing, insurance, and after-sales support, making the purchasing process more convenient and reliable. In 2023, many dealerships reported strong sales, driven by exclusive agreements with manufacturers, ensuring the availability of the latest models and official warranties.

Competitive Landscape

Major players operating in Saudi Arabia Automotive Retail Market include Aljomaih Automotive, Abdul Latif Jameel IPR Company Limited, Kia Al Jabr, SAMACO, Al Futtaim Motors, Mohamed Yousuf Naghi Motors Co., and Al Habtoor Motors. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Vehicle Type

• Passenger Cars

• Commercial Vehicles

By Propulsion Type

• Internal Combustion Engine

• Electric Vehicles

By Sales Channel

• Franchised Dealerships

• Independent Dealers

• Online Platforms

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Saudi Arabia Automotive Retail Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Vision 2030 & Government Initiatives
         2. Increasing Cultural Shift
         3. Rising Disposable Incomes
      2. Restraints
         1. Limited Local Manufacturing
         2. Fluctuating Oil Prices & Economic Sensitivity
      3. Opportunities
         1. Electric Vehicle Expansion
         2. Digital Transformation
      4. Challenges
         1. Heavy Reliance on Imports
         2. Regulatory Complexity
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Saudi Arabia Automotive Retail Market: Marketing Strategies
5. Saudi Arabia Automotive Retail Market: Pricing Analysis
6. Saudi Arabia Automotive Retail Market Overview
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Vehicle Type
         1. Passenger Cars
            1. Hatchbacks
            2. Sedans
            3. SUVs
            4. Coupes & Convertibles
         2. Commercial Vehicles
            1. Light Commercial Vehicles
            2. Heavy Commercial Vehicles
            3. Pickup Trucks
      2. By Propulsion Type
         1. Internal Combustion Engine
         2. Electric Vehicles
      3. By Sales Channel
         1. Franchised Dealerships
         2. Independent Dealers
         3. Online Platforms
7. Competitive Landscape
   1. List of Key Players and Their End Users
   2. Saudi Arabia Automotive Retail Company Market Share Analysis, 2024
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Development (Mergers, Acquisitions, Partnerships)
8. Impact of Escalating Geopolitical Tensions on Saudi Arabia Automotive Retail Market
9. Company Profiles (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. Aljomaih Automotive
   2. Abdul Latif Jameel IPR Company Limited
   3. Kia Al Jabr
   4. SAMACO
   5. Al Futtaim Motors
   6. Mohamed Yousuf Naghi Motors Co.
   7. Al Habtoor Motors
   8. Other Prominent Players
10. Key Strategic Recommendations
11. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3. Market Breakdown & Data Triangulation
       1. Secondary Research
       2. Primary Research
    4. Breakdown of Primary Research Respondents
    5. Assumption & Limitation

*Financial information of non-listed companies will be provided as per availability

**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable

List of Figures

Figure 1   Saudi Arabia Automotive Retail Market Segmentation

Figure 2   Saudi Arabia Automotive Retail Market Value Chain Analysis

Figure 3   Company Market Share Analysis, 2024

Figure 4   Saudi Arabia Automotive Retail Market Size, By Value (USD Billion), 2019–2031

Figure 5   Saudi Arabia Automotive Retail Market Share, By Vehicle Type, By Value (USD Billion) 2019–2031

Figure 6   Saudi Arabia Automotive Retail Market Share, By Propulsion Type, By Value (USD Billion) 2019–2031

Figure 7   Saudi Arabia Automotive Retail Market Share, By Sales Channel, By Value (USD Billion) 2019–2031

List of Tables

Table 1      Saudi Arabia Automotive Retail Market Share, By Vehicle Type, By Value (USD Billion) 2019–2031

Table 2      Saudi Arabia Automotive Retail Market Share, By Propulsion Type, By Value (USD Billion) 2019–2031

Table 3      Saudi Arabia Automotive Retail Market Share, By Sales Channel, By Value (USD Billion) 2019–2031

Table 4      Aljomaih Automotive Company Overview

Table 5      Aljomaih Automotive Financial Overview

Table 6      Abdul Latif Jameel IPR Company Limited Company Overview

Table 7      Abdul Latif Jameel IPR Company Limited Financial Overview

Table 8      Kia Al Jabr Company Overview

Table 9      Kia Al Jabr Financial Overview

Table 10    SAMACO Company Overview

Table 11    SAMACO Financial Overview

Table 12    Al Futtaim Motors Company Overview

Table 13    Al Futtaim Motors Financial Overview

Table 14    Mohamed Yousuf Naghi Motors Co. Company Overview

Table 15    Mohamed Yousuf Naghi Motors Co. Financial Overview

Table 16    Al Habtoor Motors Company Overview

Table 17    Al Habtoor Motors Financial Overview