Saudi Arabia is at the forefront of the MEA automotive powertrain market, supported by its Vision 2030 strategy and significant investments in electric vehicle (EV) ventures such as Lucid Motors. In 2024, the regional market was valued at USD 1.58 billion, with Saudi Arabia actively advancing electrification, evidenced by the installation of over 300 EV charging stations in 2023. Projections for 2025 to 2031 indicate a compound annual growth rate (CAGR) of 8.58%, driven by government incentives and increasing consumer interest in hybrid vehicles. However, the sector faces challenges including high import expenses and limited domestic manufacturing capacity. Addressing these issues will require strategic collaborations to expand EV infrastructure and ensure compliance with environmental regulations.
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