Cartea publication.
Saudi Arabia’s auto market, one of the region’s largest, is undergoing rapid evolution. The February 2025 Saudi Automotive Market Report from Cartea Research Institute reveals that Japanese and Korean brands collectively command over 50 percent of market share. Toyota and Hyundai top the sales charts, even as new entrants shift the competitive balance. In stark contrast, the top five Chinese brands account for just 5.3 percent of sales, illustrating the steep challenges ahead.
With petrol and diesel models making up 93.3 percent of sales, and with strong demand for family vehicles and smart tech, Chinese automakers face two critical tasks: dethrone established Japanese-Korean leaders and cater to Saudi drivers seeking economical sedans, seven-seat SUVs, and localized services.
This snapshot explores the market through brand dominance, pricing tiers, and online consumer interest, offering Chinese brands a roadmap for competitive entry.
- Dominance and Disruption
Today’s Saudi market exhibits a three-pillar brand structure. Heritage giants—Japanese and Korean marques—remain dominant owing to wide dealer coverage, proven reliability, and extensive after-sales networks. Fast-rising competitors gain ground through aggressive local marketing and timely product launches. Chinese brands have ventured into mid-tier segments (SAR 50,000–120,000) but are absent in premium sectors (above SAR 120,000), underscoring their uphill battle.
- Pricing Segmentation
In February 2025, sedans captured more than 50 percent of registrations, primarily in the SAR 50,000–120,000 bracket, reflecting consumer focus on affordability and fuel efficiency. Simultaneously, sport utility vehicles comprised over 30 percent of sales, with families favoring seven-seat layouts and off-road capability in the SAR 120,000+ range. Chinese models remain underrepresented in both categories, spotlighting the need for better alignment with buyer expectations.
- Consumer Search Trends
Local online search data indicates that Jetour led Chinese marques with 15,959 queries, fueled by new model introductions and intensified marketing. Changan achieved the highest estimated site traffic, about 86,000 visits, driven by a Saudi-focused product mix and tailored promotions. These figures highlight the imperative of region-specific digital strategies to boost brand visibility.
Strategic Imperatives
By integrating sales and search data, Cartea Research Institute identifies three strategic imperatives for automakers—particularly Chinese brands—seeking success in Saudi Arabia:
Leverage the Three-Pillar Brand Model: Roll out agile, locally tuned offerings and enhance after-sales support to breach premium tiers.
Align with Powertrain Norms: Accept that ICE vehicles will prevail short-term; promote hybrids as transitional solutions and build NEV infrastructure.
Target Key Price Bands: Offer competitively priced sedans in SAR 50,000–120,000 and expand robust, seven-seat SUVs above SAR 120,000.