Saudi Arabia Commercial Vehicle Market, 2024-2035

Saudi Arabia is Experiencing Transformational Growth by Diversifying its Economy with Vision 2030, Which Focuses on the Automotive Sector, Aiming to Boost Local Manufacturing and Innovation

Saudi Arabia is undergoing significant economic transformation driven by its Vision 2030 initiative, which aims to reduce dependency on oil and diversify revenue sources. Historically reliant on oil exports, the kingdom is enhancing non-oil sectors to foster sustainable growth. As the second-largest contributor to the Middle East economy after the UAE, Saudi Arabia's economy has grown at an approximate annual rate of 27%. Within the Gulf Cooperation Council (GCC), Saudi Arabia is the largest market for new and used vehicles and automotive parts, leading in automotive imports from the United States, with a portion re-exported.

This study covers the Vision 2030 targets set by the Saudi Arabian government, its outcomes to date, and future impacts.

The truck market, which primarily relies on imports, includes major companies such as Daimler, Mitsubishi Fuso, Hino, Isuzu, Scania, and SinoTruk. The Saudi government promotes localization to bolster the economy, with a projected growth rate of 3% for medium-duty trucks (MDTs) and 5% for heavy-duty trucks (HDTs), according to Frost & Sullivan estimates.

This study examines Vision 2030's emphasis on advanced technologies, including automation, IoT, and data analytics, to enhance logistics efficiency and service quality.

The commercial vehicle industry is evolving to meet these demands and focuses on environmental sustainability. Initiatives aimed at developing green logistics solutions and eco-friendly vehicle fleets align with global trends toward reducing carbon footprints. Saudi Arabia is committed to achieving net-zero emissions by 2060, and it is investing more than $180 billion to reduce greenhouse gas emissions.

This study analyzes how this commitment is expected to accelerate the demand for battery electric vehicles (BEVs) and drive truck electrification, supporting the kingdom's vision of a diversified and sustainable economy.