Arab News, Thu, Jun 06, 2024 | Dhu al-Qadah 29, 1445
Survey forecasts 85% of Saudi car drivers likely to buy a battery-electric vehicle by 2035
Saudi Arabia:
Approximately 85 percent of residents in Saudi Arabia are likely to purchase
battery-electric vehicles by 2035, a global consulting firm’s study has found.
Currently, some 70 percent of the country’s
population have expressed a moderate to strong interest in owning BEVs,
according to AlixPartners' 2024 International Electric Vehicle
Consumer-Sentiment Survey, released by AlixPartners.
In China, the world’s largest automobile market,
the “very” or “moderately” likely BEV-purchase intention is nearing totality
while growth in sentiment for pure BEVs stagnates at 35-43 percent in the US and
Europe, the survey added.
While costs and charging are the primary concerns
globally when selecting a BEV, respondents in Saudi Arabia show less concern
about financial matters compared to other countries. Instead, they place greater
emphasis on issues such as safety, the complexity of the vehicles, and
aftermarket support.
Notably, 93 percent of Saudi respondents who are
“very” or “moderately” likely to consider a BEV also show a corresponding
inclination towards selecting a PHEV for their next vehicle purchase or lease.
Alessandro Missaglia, partner and managing
director at AlixPartners commented: “In Saudi Arabia, we’re witnessing a
parallel trend to the USA and Europe, where BEV-intentioned buyers are
increasingly considering PHEVs as viable alternatives.”
This shift, he added, reflects consumers' desires
to address immediate needs while mitigating charging and range concerns. As
traditional automakers, suppliers, and dealers adapt to this transition, they
face significant challenges in balancing present and future demands.
AlixPartners’ survey also highlighted a notable
trend in Saudi Arabia's EV market, indicating that Chinese BEV manufacturers,
having refined their products extensively in their domestic market, are now
ready for global expansion.
Notably, Saudi consumers exhibit the highest
awareness of Chinese BEV brands, with 93 percent of those “very” or “moderately”
likely to purchase BEVs being familiar with at least one Chinese brand, among
which BYD leads in recognition.
The results-driven global consulting firm noted
that this contrasts with international figures, where 47 to 71 percent of
potential BEV buyers are aware of one or more Chinese brands.
“Interestingly, our survey highlights a
substantial awareness of Chinese BEV brands, in fact highest, in Saudi Arabia,
which coincides with the high share of Chinese brands in the Kingdom (16
percent),” Missaglia said, adding that the imminent production of Lucid and
Ceer, however, is poised to disrupt existing market dynamics.
“As a result, we anticipate a potential shift in
brand awareness and consumer preferences, underscoring the need for agile
strategies from both Chinese and local manufacturers to sustain their
competitive advantage in Saudi Arabia's rapidly evolving EV landscape,” the
managing director added.
AlixPartners’ survey, the third of its kind,
included 10,000 respondents in 10 markets that represent more than 80 percent of
global BEV sales, with 1,000 respondents in each market.
The study gauged general interest in BEVs and
PHEVs; price sensitivity; and awareness and consideration globally of Chinese
automaker brands.