- According to the latest data released by the Saudi Arabian Tax and Customs Authority (ZATCA), China's share of car exports to Saudi Arabia has significantly increased over the past two years, officially surpassing Japan to become the country's largest car import supplier.
- In 2025, Saudi Arabia's total car imports reached 959,403 vehicles. In the current supply structure, China ranks first, Japan has fallen to second place, followed closely by India, Thailand, and South Korea, while the market share of U.S. car imports has noticeably declined to sixth place.
- To reduce reliance on imported cars, the Saudi government is accelerating the construction of the King Salman Automotive Industry Park in the King Abdullah Economic City Special Zone, introducing Lucid Motors and the local electric vehicle brand Seer, aiming to transition to localized manufacturing and re-export trade within the Gulf Cooperation Council (GCC) region.
Fundamental Restructuring of Import Structure
According to the latest statistics released by the Saudi Arabian Tax and Customs Authority, over the past two years, Saudi Arabia's total car imports have accumulated to approximately 1.9 million vehicles. In 2025 alone, car imports reached 959,403 vehicles, indicating the country's continued strong consumer demand. In the latest supplier structure, Chinese cars, with their comprehensive supply chain system and high cost-effectiveness, have surpassed Japan for the first time, becoming Saudi Arabia's largest source of car imports. Japan, India, Thailand, and South Korea follow in succession, while the market share of U.S. cars has significantly shrunk, now down to sixth place. This shift marks a substantial restructuring of trade flows in the core automotive market of the Middle East.
Transformation of Consumption Structure and Market Share Reorganization
Due to the ongoing systematic construction of public transportation infrastructure, Saudi Arabia's urban and intercity transportation has long heavily relied on private passenger cars, keeping the country among the world's top twenty car consumption markets. Previously dominated by the U.S., Japan, and South Korea, the import market is now seeing rapid penetration by Chinese car manufacturers, who are quickly iterating in the fields of intelligence and electrification. If the current import consumption momentum continues, Chinese brands are likely to further consolidate their market share in Saudi Arabia, potentially creating a long-term replacement effect on the existing stock of traditional Japanese and American models.
Supply Chain Restructuring at King Salman Industrial Park
In response to the profound changes in the international car import landscape, the Saudi Arabian government is not stopping at import substitution on the consumer end but is actively adopting industrial upgrading strategies. The aim is to strengthen the resilience of the local supply chain to reduce dependence on external supply chains. As one of the core strategic plans of its national vision, Saudi Arabia is intensifying the construction of the King Salman Automotive Industry Park in the King Abdullah Economic City Special Zone. This park is positioned as a central hub for local and international automotive manufacturing in the Middle East, offering policy incentives and high-standard infrastructure to attract deep integration of the global automotive supply chain.
Transition from Import Orientation to Local Manufacturing
Currently, the industrial park has successfully attracted international emerging vehicle companies like Lucid Motors and Saudi Arabia's first local electric vehicle brand, Seer, to set up factories. The ultimate goal of the Saudi government is to establish a complete automotive production, assembly, and parts supply chain locally. As local manufacturing capabilities gradually improve, Saudi Arabia not only plans to meet the vast domestic consumer market demand but also aims to extend part of its production capacity to other member countries of the Gulf Cooperation Council. If this industrial transformation is successfully implemented, Saudi Arabia will effectively convert its massive import consumption momentum into a key driving force for diversifying its national industrial development.
