Copyright FOURIN, Inc. 2023
Overview of Saudi Arabia’s Automobile Market in 2021
Saudi Arabia's automobile sales in 2021 increased to 567,711 units, up 24.2% from the previous year. Although sales went up by 5.7% compared to 2019 before the outbreak of the corona pandemic, demand remained at just over 60% of the 2013-2014 level of around 850,000 units. Toyota maintained its top position with 160,964 units, up 26.1% year-on-year, and its market share increased by 0.5 pp to 28.4%. The No. 1 model was the Toyota Camry, going up 26.6% to 33,420 units.
Saudi Arabia: Recent Developments
・Vehicle sales in 2021 increased by 24.2% year-on-year to 567,711 units and went up by 5.7% compared to 2019.
- Toyota maintained its top position with 160,964 units, up 26.1% year-on-year while its market share increased by 0.5 pp to 28.4%.
- The Toyota Camry became the top-selling model in 2021, going up 26.6% year-on-year to 33,420 units. It surpassed the previous year's top model Hyundai Elantra which dropped 7.3% year-on-year.
・In February 2022, U.S. emerging BEV manufacturer Lucid Motors announced plans to set up an assembly plant in King Abdullah Economic City (KAEC).
- It will assemble the luxury sedan Air. Construction began in the first half of 2022. The maximum production capacity of the factory will be 150,000 units/year.
- PIF (Public Investment Fund), a Saudi Arabian sovereign wealth fund, has invested in Lucid since 2018.
・In April 2022, the Saudi government agreed to purchase 50,000 BEVs from Lucid over the next 10 years. There is also an option to purchase an additional 50,000 units within the same period, raising the total up to 100,000 units.
- In addition to Saudi Arabia, vehicles will be also made in the United States.
・By 2030, Saudi Arabia aims to make 30% of the vehicles on Riyadh roads electrified. Total investment in the project is 700 billion SAR.
・The GDP growth rate in 2021 was 3.2% year-on-year (Saudi government). The growth forecast for 2022 is 7.6% (IMF, as of April 2022).