This analysis was published by Cartea.
Saudi Arabia’s automotive sector—among the largest in the Middle East—is undergoing dramatic change. The February 2025 Saudi Automotive Market Report from Cartea Research Institute (serving Arabic-speaking motorists with expert news, buying advice, and complete vehicle services) finds that Japanese and Korean brands together account for over 50 percent of sales. Toyota and Hyundai remain at the summit, even as fresh players begin to shift competitive balances. By contrast, the top five Chinese marques hold merely a 5.3 percent share, underscoring the significant obstacles they face.
With fuel-powered models still dominating 93.3 percent of transactions, alongside growing appetite for family-oriented vehicles and smart features, two key questions arise: How can Chinese automakers break through entrenched Japanese-Korean dominance? And how might they address Saudi buyers’ demand for economical sedans, seven-seat SUVs, and tailored local support?
This report examines market forces from three viewpoints—brand prominence, price-tier performance, and digital engagement—to provide Chinese brands with actionable strategies.
- Brand Positioning Landscape
The Saudi domain now reveals a tri-sector brand spectrum. Firstly, heritage leaders—Japanese and Korean marques—hold strong thanks to extensive dealership networks, stellar reliability reputations, and solid after-sales service, which collectively earn enduring consumer confidence. Secondly, up-and-coming names—regional and global entrants—are rapidly scaling up via targeted local campaigns and frequent product launches. Thirdly, Chinese contenders have begun encroaching on mid-range slots (SAR 50,000–120,000) but remain nearly invisible above SAR 120,000, highlighting the uphill fight for premium positioning.
- Price Segment Analysis
In February 2025, sedans represented over half of registrations, concentrated in the SAR 50,000–120,000 band, reflecting shopper priorities of purchase price and operating economy. Concurrently, SUVs captured more than 30 percent of sales—especially in the SAR 120,000+ bracket—driven by families seeking seven-seat versatility and off-road robustness. Chinese models have yet to generate strong traction in either category, pointing to unmet local expectations.
- Digital Interest Patterns
Online search metrics in Saudi Arabia reveal that Jetour led Chinese brands with 15,959 queries, spurred by a recent model debut and intensified regional promotions, while Changan recorded the highest projected site visits, about 86,000, demonstrating the power of locally tailored marketing and product alignment. These data underscore the necessity of pinpointed digital outreach to raise brand awareness and drive purchase consideration.
Strategic Roadmap
By fusing sales data with online interest trends, Cartea Research Institute derives three pivotal strategic imperatives for automakers—particularly Chinese entrants—seeking growth in Saudi Arabia:
- Master the Brand Spectrum
– Deploy flexible, market-specific offerings to rival fast-growing challengers.
– Elevate perceived quality and bolster service networks to crack into premium segments controlled by established leaders. - Adapt to Powertrain Realities
– Recognize that ICE vehicles will predominate in the near term; use hybrid models as a transition.
– Stimulate NEV adoption via infrastructure investments and consumer education. - Target Core Price Bands
– Offer competitively priced sedans in SAR 50,000–120,000 for cost-sensitive buyers.
– Introduce robust, seven-seat SUVs above SAR 120,000 to meet the needs of families and adventure seekers.
