Imported 1.9 million cars in two years: China has become a supplier to Saudi Arabia, and the market structure is reshaping

About 1600 electric vehicles entered the Egyptian market in May, which is equivalent to 8% to 10% of the number of fuel vehicles entering the market during the same period...

According to the latest data from the General Administration of Zakat, Taxation and Customs (ZATCA) of Saudi Arabia, Saudi Arabia has imported a total of approximately 1.9 million vehicles between 2024 and 2025. Among them, 942,100 vehicles will be imported in 2024 and will further increase to 959,400 vehicles in 2025. The data reflects that as one of the largest automobile markets in the Gulf region, Saudi automobile consumer demand remains relatively resilient.

It is worth noting that China has become Saudi Arabia's largest source of car imports. Statistics show that in the past two years, China has ranked first in Saudi Arabia's automobile supplier, and Japan, India, Thailand, South Korea and the United States have also ranked among the major source countries of exports.

From a market perspective, the expansion rate of China brands in Saudi Arabia has accelerated significantly in recent years. Whether they are traditional fuel vehicles or new energy models, China brands are constantly expanding their market coverage. At the same time, diversified import sources also mean that Saudi consumers have richer vehicle choices, and market competition is intensifying.

However, Saudi Arabia's development direction does not just stop at the import level.

According to the "Saudi Vision 2030" plan, the automobile industry has become an important part of promoting economic diversification. In recent years, the Saudi government has continued to increase investment in the automobile manufacturing industry, especially in the field of new energy vehicles, hoping to gradually establish a complete local automobile industry chain and reduce dependence on the oil economy.

One of the most concerned projects currently is the complete vehicle factory built by American electric vehicle company Lucid in the King Abdullah Economic City. This is also Saudi Arabia's first international electric vehicle manufacturing project. In addition, Saudi Arabia's local electric vehicle brand "Ceer" is also promoting mass production plans, which is regarded as an important symbol of Saudi Arabia's efforts to build an independent automobile industry.

Official plans show that in the next few years, Saudi Arabia hopes to achieve an annual manufacturing capacity of approximately 500,000 vehicles, while increasing the matching rate of local parts and components, and improving the supply chain and automobile supporting industry system.

For China's used car exporters, the Saudi market has sent two signals worthy of attention.

On the one hand, the import scale of nearly 1.9 million vehicles shows that Saudi Arabia is still one of the most attractive automobile consumer markets in the Middle East, and the recognition and acceptance of China brands locally are also continuing to increase; On the other hand, with the advancement of local manufacturing strategies, future market policies may gradually tilt towards local production, assembly and industrial chain investment, and the development space solely relying on imports may not always maintain the current level.

written in the end

The Saudi market currently shows the dual characteristics of "imports continue to grow and local manufacturing accelerates simultaneously." For China automobile exporters, short-term opportunities still come from huge market demand and the increased influence of China brands; but in the long run, what is more worthy of attention is the changes brought about by the localization trend of the Saudi automobile industry. Entering the Saudi market in the future may not only be a matter of selling cars, but also involve local cooperation, parts supply, after-sales service and even industrial chain layout. Whoever can adapt to this change in advance will have a better chance of continuing to benefit from the Middle East's largest auto market.

Source: Guangdong Good Car

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