The Saudi car market trends in 2025 are full of exciting changes, with a mix of old favorites and innovations. From electric vehicles (EVs) to smart cars, and digital car shopping to a shift towards greener transportation, Saudi Arabia is gearing up for a future full of new possibilities.
But how is the market doing right now, and what can we expect as we move into 2026? Let’s take a look at the key trends and exciting changes happening in Saudi Arabia’s car market.
What’s Happening in the Saudi Car Market in 2025?
The Saudi car market continues to grow steadily in 2025. As more people enter the middle class, demand for cars is rising. In fact, the market is expected to be worth USD 47.46 billion by the end of the year. However, key trends are shaping the market, and we will discuss the most important ones here.
Big Changes in 2025: What’s Trending?
1. Electric Vehicles (EVs): Taking Off Slowly but Steadily
Electric vehicles (EVs) are gaining attention in Saudi Arabia in 2025, but their growth is slower than expected. The Saudi government is making significant efforts to support EVs as part of its Vision 2030 green goals.
Here’s why EVs are still growing slowly in 2025:
- Government Support: The government is providing incentives, such as rebates, and installing charging stations.
- Local Production: Ceer Motors, a new Saudi EV brand, is preparing to launch, making it easier to buy electric cars locally.
- Challenges: Despite these positive moves, EVs still make up only around 3% of total car sales. Issues like high prices and insufficient charging stations are slowing things down.
Despite these challenges, the future looks bright for EVs. Car market trends in KSA suggest the EV market will continue to grow through 2026.
2. Buying Cars Online: The Future of Shopping
One of the biggest changes in the Saudi car market in 2025 is the move to digital car shopping. Just as people buy clothes or electronics, more and more people are now buying cars online. Here’s why it’s gaining momentum:
- Online Platforms: Saudi car buyers can now shop for cars, compare prices, and even arrange financing all from their phones or computers. You can check out Arabwheels to sell or buy a car online as well!
- Virtual Showrooms: Some dealerships offer virtual tours of their cars. You can get a 360-degree view of a car and even schedule a test drive from home.
This digital shift is especially popular with younger buyers who prefer speed and convenience. By 2026, this trend will likely become the new norm in Saudi Arabia’s car market.
3. Smart Cars: Safer and More Connected
Smart cars are another exciting development in the car market trends 2025 in KSA. These vehicles feature advanced technology to enhance safety, comfort, and convenience. Here are some key features that are making cars smarter:
- Advanced Driver Assistance Systems (ADAS): Cars with features such as lane-keeping assist, adaptive cruise control, and automatic emergency braking are becoming increasingly common. These features help keep drivers safer on the road.
- In-Car Connectivity: Many cars now offer infotainment systems that connect to your smartphone and support navigation, music, and more.
These smart car features are expected to become standard in most new cars by 2026.
4. Going Green: More Sustainable Cars
Sustainability is a key focus in Saudi Arabia’s automotive sector. In addition to electric vehicles, hybrid cars are also gaining popularity in 2025. These cars combine a gasoline engine and an electric motor, making them more fuel-efficient and eco-friendly. They are a great middle ground for people who aren’t ready for a full electric car but still want to reduce their carbon footprint.
The Saudi government is also pushing for cleaner fuels and eco-friendly car options. By 2026, expect to see more hybrids and other sustainable cars on the roads.
What Can We Expect for 2026?
As we look ahead to 2026, several exciting predictions await the Saudi car market.
1. EVs Will Grow, But Slowly
EV adoption is still slower than expected, but car market trends in KSA for 2025 suggest that electric vehicles will make up around 10-15% of all car sales by 2026. More charging stations, better government support, and local production will drive this growth.
2. Local Car Production Will Boost the Market
By 2026, Saudi Arabia is likely to become a regional hub for car manufacturing. With companies like Ceer Motors leading the way, expect to see more locally-produced vehicles on the market. This will make cars more affordable and widely available to Saudis.
3. Connected Cars Will Become the Norm
As smart car technology continues to improve, we can expect more connected cars on the road by 2026. These cars will not only be safer but also more integrated into our everyday lives. Imagine cars that communicate with each other and with traffic systems for better driving experiences. The future of cars in Saudi Arabia will be smarter and more efficient than ever before.
4. Car Sharing and Subscription Services Will Rise
With younger consumers more interested in flexible options, car-sharing and subscription services will become increasingly popular. These services allow people to drive a car without the long-term commitment of ownership. Expect more car-sharing services and flexible mobility options to grow in 2026.
Conclusion: A Bright Future for the Saudi Car Market
The car market trends in 2025 reflect an exciting time for Saudi Arabia’s automotive industry. While EVs are still growing at a slower pace, there’s no doubt that the market is shifting toward more eco-friendly and connected cars. As digital shopping continues to grow, car buyers will enjoy more convenience and better options than ever before.
By 2026, we can expect more electric cars, smart technologies, and local manufacturing to play a huge role in the Saudi car market. The future is bright for the Kingdom’s car industry, and these trends will continue to shape how we drive and interact with our cars.
Interested in sedans? Be sure to check the best sedans Saudi buyers considered buying before 2026.
Follow Arabwheels for more insights into automotive trends and updates as we dive into 2026.
