Saudi Arabia: The Future of Electric Vehicles
In a groundbreaking study by a global consulting firm, it has been revealed that approximately 85 percent of residents in Saudi Arabia are likely to purchase battery-electric vehicles (BEVs) by 2035.
The Saudi Perspective on Electric Vehicles
Currently, 70 percent of the country’s population have shown a strong interest in owning BEVs, according to AlixPartners’ 2024 International Electric Vehicle Consumer-Sentiment Survey.
In contrast to the US and Europe, where sentiment for pure BEVs is stagnating, China’s market is booming with a high likelihood of BEV purchases. However, Saudi respondents are less concerned about costs and charging, focusing more on safety, vehicle complexity, and aftermarket support.
A Shift in Consumer Preferences
Interestingly, 93 percent of Saudi respondents considering a BEV also show interest in plug-in hybrid electric vehicles (PHEVs) for their next vehicle purchase or lease. This trend reflects a global shift where BEV-intentioned buyers are now considering PHEVs as viable alternatives.
Alessandro Missaglia, a partner at AlixPartners, noted that as traditional automakers adapt to this transition, they face challenges in meeting both present and future demands of consumers.
The Rise of Chinese BEV Brands
The survey also highlighted the increasing presence of Chinese BEV manufacturers in the Saudi market. Chinese brands, such as BYD, have gained significant recognition among Saudi consumers, with 93 percent aware of at least one Chinese brand.
As Chinese manufacturers prepare for global expansion, the landscape of the EV market in Saudi Arabia is set to undergo significant changes. The upcoming production of Lucid and Ceer is expected to disrupt existing market dynamics, requiring agile strategies from both Chinese and local manufacturers to maintain their competitive edge.
Conclusion
With the rapid evolution of the EV landscape in Saudi Arabia, the future looks bright for electric vehicles. As consumer preferences shift towards more sustainable options, the market is ripe for innovation and competition among manufacturers to meet the growing demand for BEVs and PHEVs in the region.