Cartea Research February 2025 Saudi Automotive Market Insights

This article was published by Cartea.

As one of the Middle East’s most significant automotive markets, Saudi Arabia is currently experiencing a considerable transformation within its vehicle sector. According to the February 2025 Automotive Market Report by Cartea Research Institute—a comprehensive platform delivering expert car news, precise purchasing recommendations, and end-to-end automotive services for Arabic-speaking consumers—Japanese and Korean automakers collectively dominate the market, holding a combined market share of more than 50%. Toyota and Hyundai continue to be the top performers in sales, even as new competitors gradually reshape the market. In comparison, the five largest Chinese car brands account for only 5.3% of total sales, underscoring the significant hurdles they face in increasing their influence.

With fuel-powered vehicles still accounting for 93.3% of total sales, and growing interest in spacious family vehicles and smart features, two pivotal questions arise: how can Chinese carmakers compete with the longstanding dominance of Japanese and Korean players? And how can they better serve the local market’s preferences for affordable sedans, three-row SUVs, and regionally tailored services?

This report takes a deeper look into current market dynamics through the lenses of brand positioning, vehicle segment trends, and online consumer search patterns. The purpose is to offer Chinese automotive brands strategic direction to successfully enter and grow in the Saudi market.

1. Brand Positioning Structure

The Saudi automotive scene now demonstrates a three-tiered brand hierarchy:

• Dominant Leaders: Japanese and Korean companies retain their lead thanks to extensive dealership coverage, a well-established reputation for dependability, and strong after-sales service—all of which help build lasting customer loyalty.
• Emerging Players: A new wave of both global and regional brands is gaining traction by deploying targeted marketing campaigns and launching vehicle models designed with local consumer preferences in mind.

Chinese Manufacturers: While some Chinese brands have made initial progress in the mid-price bracket—particularly within the SAR 50,000 to 120,000 range—they are still largely missing from the premium market above SAR 120,000, indicating the need for a

more significant push to elevate their brand image and consumer trust.

2. Vehicle Category Distribution

As of February 2025, sedans comprised more than half of all vehicle sales in Saudi Arabia. Most of these sedan sales fell within the SAR 50,000 to 120,000 pricing band, highlighting a consumer focus on affordability and fuel efficiency. Meanwhile, SUVs accounted for over 30% of total units sold, with the greatest demand occurring in the SAR 120,000+ range. These vehicles, often equipped with seven seats and capable of handling off-road conditions, are especially favored by families and outdoor enthusiasts.

Despite a broadened product range, Chinese automakers have yet to make significant headway in either the sedan or SUV categories. This suggests that their

3. Engine Type Preferences

Internal combustion engine (ICE) vehicles continue to hold an overwhelming market share, comprising 93.3% of all units sold. This dominance is driven by low local fuel costs and a reliable refueling network. On the other hand, hybrid electric vehicles (HEVs) represent only a minor portion of the market, and new energy vehicles (NEVs)—which include battery-electric and plug-in hybrid models—are still at the early stage of market entry. Key barriers to NEV adoption include a limited public charging network, low consumer awareness, and the ongoing cost benefits of gasoline, which collectively slow down the transition away from ICE-based powertrains.

4. Penetration by Price Bracket

Chinese brands have made notable strides in the mid-tier pricing range (SAR 50,000–120,000), offering compact sedans with an attractive value proposition focused on high specifications at lower prices. However, these brands are still underrepresented in the higher-end segment (vehicles priced above SAR 120,000), which is currently dominated by luxury sedans and premium SUVs from established Japanese and Korean players.

For Chinese automakers to succeed in this segment, they will need to raise product quality, expand their sales and service infrastructure, and build a stronger brand reputation among Saudi consumers.

5. Online Search Behavior

Insights from digital search data in Saudi Arabia for February 2025 reveal important trends:

• Jetour led all Chinese car brands with 15,959 online searches, likely driven by a recent product release and aggressive regional marketing.
• Changan achieved the highest projected web traffic, with approximately 86,000 visits, reflecting strong engagement through a localized product portfolio and strategic promotions.

These figures highlight how vital online marketing and search engine visibility are in raising awareness and attracting interest in an increasingly digital-first consumer environment.

Key Strategic Recommendations

Based on the combination of sales data and search behavior analysis, Cartea Research Institute outlines three strategic recommendations—especially relevant for Chinese automotive companies—seeking to expand in Saudi Arabia:

1. Compete Within the Brand Structure

Adapt quickly to market needs with region-specific products.

Improve perceived reliability and deliver strong after-sales support to gain entry into the premium market segment.

• Acknowledge Powertrain Realities

Maintain a focus on ICE vehicles in the near future, while using hybrids as transitional models.

Invest in charging infrastructure and consumer education to encourage NEV adoption.

• Address Core Segment Needs

Offer affordable sedans in the SAR 50,000–120,000 price band.

Develop durable, seven-seater SUVs priced above SAR 120,000 to meet the needs of families and off-road users.

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