Saudi Arabia poised for EV boom, reveals survey

A new survey by consultancy firm, AlixPartners, reveals a booming electric vehicle (EV) market in Saudi Arabia, with a significant shift towards battery-electric vehicles (BEVs).

AlixPartners’ 2024 International Electric Vehicle Consumer-Sentiment Survey, the third of its kind, included 10,000 respondents in 10 markets, representing more than 80 per cent of global battery electric vehicle (BEV) sales, with 1,000 respondents in each market.

The study gauged general interest in BEVs and plug-in hybrid electric vehicles (PHEVs), price sensitivity, and awareness and consideration globally of Chinese automaker brands.

The Saudi market is key to EV companies

Alessandro Missaglia, partner and MD at AlixPartners, commented: “Saudi Arabia presents a fascinating case. While BEVs are gaining traction, PHEVs offer a compelling alternative for range-anxious consumers.

“This trend challenges traditional automakers to cater to both present and future demands.”

In numbers: Key findings of the survey

• 70 per cent of Saudi residents say they are “very” or “moderately” likely to purchase a BEV, the highest globally. This figure is projected to reach 85 per cent by 2035. In contrast, BEV purchase intention in the world’s largest auto market, China, is nearing saturation, while the US and Europe hover around 35-43 per cent.
• Cost and charging concerns, prevalent globally, are less significant for Saudi consumers. Their primary anxieties lie in safety, complexity, and aftermarket support.
• 93 per cent of Saudi BEV-interested respondents also consider a PHEV, mirroring trends in the USA and Europe. Both regions prioritise charging flexibility and extended range offered by PHEVs.
• 93 per cent of Saudi potential BEV buyers are aware of at least one Chinese brand, significantly higher than the global average (47-71 per cent). BYD leads in brand recognition while the upcoming production of Lucid and Ceer EVs are expected to shift brand awareness and consumer preferences.

Read: EV giant Lucid opens showroom in Dubai, expands presence in the region