Published by Cartea.
As a top consumer market in the Middle East, Saudi Arabia’s automotive landscape is in flux. The February 2025 Saudi Automotive Market Report from Cartea Research Institute shows that Japanese and Korean brands together hold over 50 percent of total sales. Toyota and Hyundai lead the pack, while less-established entrants gradually reshape the competitive field. Meanwhile, Chinese marques collectively account for just 5.3 percent of the market, highlighting the significant hurdles they face.
With traditional fuel vehicles comprising 93.3 percent of sales, increasing demand for family vehicles, and rising interest in smart features, Chinese brands must answer two key challenges: how to shake off Japanese-Korean dominance and how to satisfy Saudi buyers’ demand for cost-effective sedans, seven-seat SUVs, and localized services.
This briefing dissects the market via brand leadership, segment share, and web search behavior, aiming to guide Chinese brands toward a successful entry.
- Leadership and Newcomers
The market now shows a tripolar brand layout: fortune builders (Japanese/Korean marques) maintain supremacy through expansive dealer networks and trusted after-sales services, fast movers (new global/regional entrants) gain ground via aggressive local marketing, and Chinese contenders have broken into mid-tier ranges (SAR 50,000–120,000) but remain scarce in top-end segments (above SAR 120,000), revealing their uphill task.
- Segment Share Analysis
In February 2025, sedans secured over 50 percent of registrations, mainly within SAR 50,000–120,000, reflecting consumer priorities on purchase price and economy. SUVs claimed more than 30 percent of sales, particularly in SAR 120,000+ ranges favored by families for space and off-road capacity. Chinese vehicles lag in both sectors, indicating a need for better market fit.
- Web Search Metrics
Digital search data reveals Jetour leads with 15,959 queries—driven by new model debuts and local promotions—while Changan tops potential traffic at 86,000 visits, showcasing successful Saudi-centric marketing. This underscores the need for targeted online strategies to cultivate brand recognition.
Actionable Strategies
By merging sales figures with digital engagement data, Cartea Research Institute recommends three strategic approaches for automakers—especially Chinese brands—aiming for Saudi growth:
Master the Tripolar Brand Spectrum: Leverage agility and localized offerings; build premium credibility through enhanced service.
Embrace Powertrain Realities: Accept ICE dominance short-term; position hybrids as a bridge and invest in NEV infrastructure.
Focus on Price-Band Needs: Deliver value-focused sedans in SAR 50,000–120,000; expand seven-seat SUVs above SAR 120,000 for families.
