Saudi Arabia Automotive Industry Report 2025 | Growth, EV Expansion & Investments

Saudi Arabia is rapidly developing its automotive industry as part of Vision 2030, aiming to establish 3-4 major car manufacturers and produce 400,000 vehicles annually by 2030. The government is supporting this growth with $2 billion in investments, an expanding manufacturing sector, and increasing foreign partnerships.

Key Highlights:

• Manufacturing Boom:

  • 10% factory growth in 2023, reaching 11,549 factories.
  • Manufacturing sector valued at $156 billion.
  • 128,900+ enterprises expected by 2024.

• EV Expansion & Investment:

  • EV market projected 12% growth by 2030.
  • Lucid Motors: Plans to produce 155,000 EVs annually.
  • Ceer Motors: Saudi’s first EV brand.
  • Hyundai partnership: Local assembly for EVs & internal combustion vehicles.
  • 1,000 EV charging points planned by 2030 (EVIQ leading efforts).

• Tire Manufacturing:

  • Market valued at $513 million (2022), projected $700 million (2028).
  • Heavy reliance on imports but local production growing.
  • PIF & Pirelli joint venture to produce 3.5 million tires annually.

Challenges & Workforce Issues:

• Shortage of skilled workers and aging workforce.
• Low upskilling rates and lack of technical expertise.
• Recruitment challenges in attracting young talent to manufacturing.

Recruitment & Solutions (TASC Outsourcing):

• Talent acquisition, mobility, and contract staffing support.
• Screening for key roles: Manufacturing, engineering, supply chain, quality control.

Saudi Arabia’s automotive sector is poised for major growth, but workforce development and supply chain localization remain critical to long-term success.

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