DUBLIN, Nov. 14, 2022 (GLOBE NEWSWIRE) — The report, “Saudi Arabia Electric Commercial Vehicle Market, By Propulsion Type, By Vehicle Type, By Range, By Battery Capacity, By Region Competition Forecast & Opportunities, 2017-2027F.” been added ResearchAndMarkets.com Offer.
The electric commercial vehicle market in Saudi Arabia registered around US$99.66 million in 2021 and is expected to reach US$283.42 million in 2027, growing at a CAGR of 20.07% in value terms
The fast-growing logistics industry and the rising awareness of zero-emission vehicles are driving the growth of the electric commercial vehicle market in Saudi Arabia in the forecast years.
The year 2020 was pessimistic around the world due to the spread of the novel COVID-19 virus. Almost every economy in the world has faced sluggish growth due to the introduction of lockdown measures to prevent the spread of the disease. Sales of commercial vehicles in the country recorded a decrease of 11.8% compared to 2019.
During the lockdown, all commercial vehicle plants have been declared out of order, not just in Saudi Arabia but worldwide. Since Saudi Arabia is an import-driven market, the impediment to imports had a negative impact on this market. With the showrooms closed, sales fell to just a few numbers during this period.
The oil price decline started in the first quarter of 2020, and since then the economy has started to contract. However, after the lockdown, there was a rebound in the non-oil sales sector, which helped the market to start its revival.
Increasing awareness of fuel efficient vehicles
In the coming years, too, the market will be influenced by the increasing demand for fuel-efficient, low-emission and high-performance automobiles. The low-emission vehicles will be popular in the Saudi Arabian market as people become more environmentally conscious.
The Saudi Arabian government, which is issuing strict rules and regulations regarding vehicle emissions as well as reducing the cost of electric vehicle batteries, is also having a positive impact on the market growth.
The government of Saudi Arabia has made a number of iterations to encourage the use of electric vehicles. According to a report, Saudi Arabia and the United Kingdom have signed a Memorandum of Understanding (MOU) to tackle climate change and support sustainable energy sources to achieve the Saudi Vision 2030 goals.
In addition, the establishment of a new facility is expected to create myriad job opportunities and support the development of people’s skills. In the coming years, all these factors will contribute to the economic growth of the Saudi Arabian electric commercial vehicle market.
Rising environmental concerns
The introduction of electric vehicles is a key concern of the Saudi Arabian government to help improve air quality.
Increasing adoption of EVs to reduce pollution and CO2 emissions, increasing use of EVs to reduce emissions, and strict government regulations and vehicle emissions regulations are driving the demand for EVs and contributing to the growth of the market.
To encourage the uptake of zero-emission vehicles, several governments are offering financial incentives such as tax exemptions and rebates, subsidies, and reduced parking/toll rates for electric vehicles.
entry of new players
Lucid is working with Saudi Arabia to build the country’s first electric vehicle manufacturing plant. The government wants to ensure that 30% of all cars in the capital are insured. To meet the growing demand for electric vehicles, Lucid has announced plans to invest in building an advanced electric vehicle manufacturing industry.
In addition, the National Industrial Development Center (NIDC) aims to attract major OEMs to Saudi Arabia to boost electric car production and sales in the country.
The major players such as IVECO, Scania AB and VOLVO AG are the major players in the electric commercial vehicle market in Saudi Arabia. Therefore, these companies are in the process of expanding their activities into both local and international markets.
Since the market for electric commercial vehicles is determined by takeovers, mergers, but also cooperation between numerous manufacturers, attempts are being made to open up latent markets. In the coming years, the market for electric buses and trucks is expected to increase significantly in the forecast period.
Bus manufacturers are investing heavily in their research and development and are successively expanding their portfolio to include additional electric vehicle models.
Saudi Arabia Electric Commercial Vehicles Market, By Drive Type:
Saudi Arabia Electric Commercial Vehicles Market, by Vehicle Type:
Saudi Arabia Electric Commercial Vehicles Market By Range:
Over 400 miles
Saudi Arabia Electric Commercial Vehicles Market by Battery Capacity:
100kWh – 200kWh
201kWh to 300kWh
Saudi Arabia Electric Commercial Vehicles Market by Regions:
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