This article was published by Cartea.
Saudi Arabia—one of the largest automotive consumer markets in the Middle East—is in the midst of a profound industry transformation. The February 2025 Saudi Automotive Market Report, produced by Cartea Research Institute (an automotive-lifestyle platform serving Arabic-speaking users with professional news, accurate vehicle-purchase guidance, and comprehensive services), shows that Japanese and Korean marques together capture over 50 percent of overall sales. Toyota and Hyundai remain firmly in first and second place in sales rankings, even as new competitors gradually begin to reshape the market landscape. By comparison, the combined share of the top five Chinese brands stands at only 5.3 percent, underscoring the steep challenge they face in winning broader acceptance among Saudi consumers.
In a market still overwhelmingly dominated by fuel-powered vehicles which account for 93.3 percent of all sales alongside rising demand for family-oriented models and growing consumer interest in advanced “smart”;; features, two crucial questions emerge: How can Chinese automakers overcome Japanese and Korean dominance? And how might they satisfy Saudi buyers’ core needs for affordable sedans, seven-seat SUVs, and locally tailored services. This article examines these issues through three key lenses brand hierarchy, segment distribution, and online search behavior to offer strategic guidance for Chinese marques aiming to gain solid ground in this dynamic market.
1. Brand Hierarchy
Currently, Saudi Arabia’s automotive sector reflects a “tricolor”;; brand structure
- Established Leaders
Japanese and Korean names continue to hold sway, supported by extensive dealership networks, proven track records for reliability, and robust after-sales support. These strengths have earned deep consumer trust and sustained their market leadership. - Emerging Challengers
A wave of global and regional newcomers has begun to make inroads, leveraging aggressive, localized marketing campaigns and model launches designed to match Saudi tastes. Their rapid ascent is starting to alter competitive dynamics. - Chinese Entrants
While the leading Chinese brands have taken small steps especially in the SAR 50,000–120,000 mid-price segment they remain virtually absent from premium tiers above SAR 120,000. This indicates the significant work still required to shift perceptions and credibility among higher-spending buyers.
2. Vehicle Segment Distribution
In February 2025, sedans accounted for over 50 percent of all vehicle sales in Saudi Arabia. This segment is dominated by models priced between SAR 50,000 and SAR 120,000, underscoring consumers’ focus on fuel economy and ownership cost. At the same time, SUVs captured more than 30 percent of sales, particularly in the SAR 120,000+ price band favored by families seeking spacious seven-seat layouts and off-road capability. In both categories, Japanese and Korean models maintained their stronghold, while Chinese offerings struggled to spark significant consumer interest.
3. Powertrain Preferences
Traditional internal-combustion engine (ICE) vehicles remain the overwhelming favorite, making up 93.3 percent of the market a trend driven by Saudi Arabia’s low fuel prices and extensive petrol infrastructure. Hybrid electric vehicles (HEVs) occupy only a small niche, while new energy vehicles (NEVs) including battery-electric and plug-in hybrids have only begun to penetrate this market. Limited charging infrastructure and low consumer awareness have combined to discourage many potential NEV buyers from making the switch.
4. Price Band Penetration
Chinese brands have started to establish a presence in the mid-range segment (SAR 50,000–120,000), primarily offering compact sedans with a “high specification for a low price”;; value proposition. Yet, these marques have not challenged the premium segment (above SAR 120,000), where luxury sedans and top-tier SUVs remain the province of established Japanese and Korean manufacturers. To break into this upper tier, Chinese automakers will need to strengthen both their product quality and their service networks.
5. Search-Behavior Insights
Analysis of online search data in Saudi Arabia during February 2025 highlights distinct trends among Chinese brands
- Jetour: Led with 15,959 searches, reflecting heightened interest following a recent model launch and intensified local promotional efforts.
- Changan: Achieved the highest estimated web-traffic volume around 86,000 visits underscoring the appeal of its Saudi-tailored product lineup and marketing strategy. These digital metrics underscore the importance of targeted online engagement and localized marketing in building brand awareness and purchase intent.
Strategic Takeaways
By combining traditional sales figures with digital-search behavior, Cartea Research Institute distills three pivotal insights for any automaker especially Chinese entrants seeking to expand in Saudi Arabia.
- Navigate the Tripolar Brand Structure
Leverage agility and locally tailored offerings to compete with fast-rising challengers. Build perceived quality and robust after-sales support to penetrate premium segments dominated by established leaders. - Align with Powertrain Realities
Accept that ICE vehicles will remain dominant in the near term, with hybrids serving as a transitional step toward electrification. Drive NEV adoption through infrastructure investments and consumer education. - Focus on Core Segment Demands
Offer competitively priced sedans in the SAR 50,000–120,000 band for cost-sensitive buyers. Develop spacious, rugged seven-seat SUVs above SAR 120,000 to meet family and off-road requirements.
