Noticeable Progress for Chinese Cars in the Saudi Market: Changan Ranks Sixth
Mr. Wang Chi Min, the Chinese Consul General in Jeddah, confirmed that Saudi Arabia has become the main gateway for Chinese companies to enter the Middle Eastern and Gulf markets. In recent years, relations between China and Saudi Arabia have seen significant development through the Belt and Road Initiative, accelerating their alignment with Saudi Vision 2030. The cooperation between the two countries has shifted from focusing solely on the energy sector to various other fields, reflecting the significant economic integration between them and the vast potential for future cooperation. The volume of mutual investment is expected to continue growing.
Mr. Wang pointed out that Saudi Arabia’s success in implementing Vision 2030 programs will provide enormous investment opportunities for Chinese companies. In the field of renewable energy, China excels in photovoltaic and wind energy industries, and Chinese companies continue to increase their investments in these sectors within Saudi Arabia. Additionally, China has established specialized institutions to promote the growth of modern technology industries and remains a global leader in science and technology, intending to further expand its investments in Saudi Arabia.
In 2023, the value of Saudi imports of cars and related products from China reached 4.12 billion USD. Chinese car brands Changan and Geely sold 32,485 and 28,589 cars in the Saudi market, respectively, ranking sixth and seventh. The new energy vehicle industry in China has seen rapid growth, with China exporting around 4.91 million cars in 2023, becoming the world’s largest car exporter for the first time, including 1.203 million new energy vehicles, a year-on-year increase of 77.6%. Saudi Vision 2030 aims to have electric vehicles make up at least 30% of all cars in Riyadh and major cities like Jeddah and Dammam by 2030. However, the current market penetration rate of new energy vehicles in Saudi Arabia is less than 1%. Therefore, there is significant room for Chinese car brands to increase their market share in Saudi Arabia in the long term.
