Saudi Arabia automotive drivetrain market report Size, Share, Growth Drivers, Trends, Opportunities & Forecast 2025–2030
Description
Saudi Arabia Automotive Drivetrain Market Overview
The Saudi Arabia Automotive Drivetrain Market is valued at USD 4.5 billion, based on a five-year historical analysis. This growth is primarily driven by the increasing demand for fuel-efficient vehicles, advancements in automotive technology, and a shift towards electric and hy
id drivetrains. The market is also supported by government initiatives aimed at promoting sustainable transportation solutions, such as investments in electric vehicle infrastructure and incentives for eco-friendly vehicles.
Key cities such as Riyadh, Jeddah, and Dammam dominate the market due to their significant population density, economic activities, and infrastructure development. These urban centers are witnessing a surge in vehicle ownership and a growing preference for advanced drivetrain technologies, making them pivotal in shaping market trends.
In recent years, the Saudi government has emphasized the importance of reducing carbon emissions by promoting the adoption of electric and hy
id vehicles. Although specific regulations mandating emissions standards for new vehicles are not detailed in available sources, the focus on sustainability aligns with global trends towards stricter emissions controls and the adoption of environmentally friendly vehicles.
Saudi Arabia Automotive Drivetrain Market Segmentation
By Type:
The market is segmented into various types of drivetrains, including Manual Transmission, Automatic Transmission, CVT (Continuously Variable Transmission), Dual-Clutch Transmission, Electric Drivetrains, Hy
id Drivetrains, All-Wheel Drive (AWD) Systems, Four-Wheel Drive (4WD) Systems, and Others. Among these, Automatic Transmission is the most dominant segment due to its growing popularity among consumers seeking convenience and ease of use. The increasing trend towards electric and hy
id drivetrains is also noteworthy, as consumers become more environmentally conscious.
By Vehicle Type:
The market is categorized into Passenger Cars, SUVs, Light Commercial Vehicles (LCVs), Heavy Commercial Vehicles (HCVs), Two-Wheelers, and Others. The Passenger Cars segment leads the market, driven by the increasing urbanization and rising disposable incomes of consumers. SUVs are also gaining traction due to their versatility and appeal among families, while LCVs and HCVs are essential for commercial applications.
Saudi Arabia Automotive Drivetrain Market Competitive Landscape
The Saudi Arabia Automotive Drivetrain Market is characterized by a dynamic mix of regional and international players. Leading participants such as Toyota Motor Corporation, Nissan Motor Co., Ltd., General Motors Company, Ford Motor Company, Hyundai Motor Company, Kia Corporation, Volkswagen AG, BMW AG, Mercedes-Benz Group AG, Honda Motor Co., Ltd., Mitsubishi Motors Corporation, Tata Motors Limited, Changan Automobile, BYD Company Limited, Geely Automobile Holdings Limited, Lucid Group, Inc., Ceer (Saudi Electric Vehicle Company), ZF Friedrichshafen AG, BorgWarner Inc., Magna International Inc. contribute to innovation, geographic expansion, and service delivery in this space.
Toyota Motor Corporation
1937
Aichi, Japan
Nissan Motor Co., Ltd.
1933
Yokohama, Japan
General Motors Company
1908
Detroit, Michigan, USA
Ford Motor Company
1903
Dearborn, Michigan, USA
Hyundai Motor Company
1967
Seoul, South Korea
Company
Establishment Year
Headquarters
Group Size (Large, Medium, or Small as per industry convention)
Revenue Growth Rate (Saudi Arabia Automotive Drivetrain Segment)
Market Penetration Rate (Share of Drivetrain Sales in Saudi Arabia)
Local Manufacturing Footprint
Product Portfolio
eadth (ICE, Hy
id, EV, AWD, 4WD, etc.)
R&D Investment as % of Revenue
Saudi Arabia Automotive Drivetrain Market Industry Analysis
Growth Drivers
Increasing Vehicle Production:
The automotive sector in Saudi Arabia is projected to produce approximately 500,000 vehicles in future, reflecting a significant increase from 450,000 previously. This growth is driven by the government's Vision 2030 initiative, which aims to diversify the economy and reduce dependence on oil. The rise in vehicle production directly correlates with the demand for advanced drivetrains, as manufacturers seek to enhance performance and efficiency in their offerings.
Rising Demand for Fuel Efficiency:
With fuel prices fluctuating, the demand for fuel-efficient vehicles is surging. In future, the average fuel consumption for new vehicles is expected to decrease to 6.5 liters per 100 km, down from 7.0 liters previously. This trend is pushing manufacturers to invest in innovative drivetrain technologies that enhance fuel efficiency, thereby driving market growth. The focus on sustainability is also influencing consumer preferences towards more efficient vehicles.
Government Initiatives for Local Manufacturing:
The Saudi government has introduced several initiatives to boost local manufacturing, including the National Industrial Development and Logistics Program. In future, the government aims to increase local content in automotive production to 50%, up from 30% previously. This initiative not only supports the automotive drivetrain market but also encourages foreign investments, fostering a competitive environment for local manufacturers to thrive.
Market Challenges
High Import Tariffs on Components:
The automotive industry in Saudi Arabia faces significant challenges due to high import tariffs on drivetrain components, which can reach up to 20%. This increases the overall cost of production for local manufacturers, making it difficult to compete with imported vehicles. As a result, many companies are forced to pass these costs onto consumers, potentially stifling market growth and limiting access to advanced technologies.
Limited Local Supplier Base:
The lack of a robust local supplier base for automotive components poses a significant challenge. Currently, only about 15% of components are sourced locally, with the remainder imported. This reliance on foreign suppliers not only increases costs but also affects the supply chain's reliability. In future, addressing this issue will be crucial for enhancing the competitiveness of the Saudi automotive drivetrain market and ensuring sustainable growth.
Saudi Arabia Automotive Drivetrain Market Future Outlook
The Saudi Arabia automotive drivetrain market is poised for transformative growth, driven by technological advancements and a shift towards sustainable practices. As the government continues to promote local manufacturing and electric vehicle adoption, the market is expected to see increased investments in research and development. Additionally, the integration of smart technologies and automation in manufacturing processes will enhance efficiency and product quality, positioning the market favorably for future expansion and innovation.
Market Opportunities
Growth in Aftermarket Services:
The aftermarket services sector is projected to grow significantly, with an estimated value of SAR 5 billion in future. This growth presents opportunities for companies to offer maintenance, repair, and upgrade services for drivetrains, catering to the increasing number of vehicles on the road and enhancing customer loyalty through quality service.
Investment in R&D for Advanced Drivetrains:
With the global shift towards electric and hy
id vehicles, there is a substantial opportunity for investment in research and development. In future, it is anticipated that R&D spending in the automotive sector will reach SAR 1 billion, focusing on developing advanced drivetrain technologies that improve performance and sustainability, thus attracting both local and international partnerships.
Please Note: It will take 5-7 business days to complete the report upon order confirmation.
The Saudi Arabia Automotive Drivetrain Market is valued at USD 4.5 billion, based on a five-year historical analysis. This growth is primarily driven by the increasing demand for fuel-efficient vehicles, advancements in automotive technology, and a shift towards electric and hy
id drivetrains. The market is also supported by government initiatives aimed at promoting sustainable transportation solutions, such as investments in electric vehicle infrastructure and incentives for eco-friendly vehicles.
Key cities such as Riyadh, Jeddah, and Dammam dominate the market due to their significant population density, economic activities, and infrastructure development. These urban centers are witnessing a surge in vehicle ownership and a growing preference for advanced drivetrain technologies, making them pivotal in shaping market trends.
In recent years, the Saudi government has emphasized the importance of reducing carbon emissions by promoting the adoption of electric and hy
id vehicles. Although specific regulations mandating emissions standards for new vehicles are not detailed in available sources, the focus on sustainability aligns with global trends towards stricter emissions controls and the adoption of environmentally friendly vehicles.
Saudi Arabia Automotive Drivetrain Market Segmentation
By Type:
The market is segmented into various types of drivetrains, including Manual Transmission, Automatic Transmission, CVT (Continuously Variable Transmission), Dual-Clutch Transmission, Electric Drivetrains, Hy
id Drivetrains, All-Wheel Drive (AWD) Systems, Four-Wheel Drive (4WD) Systems, and Others. Among these, Automatic Transmission is the most dominant segment due to its growing popularity among consumers seeking convenience and ease of use. The increasing trend towards electric and hy
id drivetrains is also noteworthy, as consumers become more environmentally conscious.
By Vehicle Type:
The market is categorized into Passenger Cars, SUVs, Light Commercial Vehicles (LCVs), Heavy Commercial Vehicles (HCVs), Two-Wheelers, and Others. The Passenger Cars segment leads the market, driven by the increasing urbanization and rising disposable incomes of consumers. SUVs are also gaining traction due to their versatility and appeal among families, while LCVs and HCVs are essential for commercial applications.
Saudi Arabia Automotive Drivetrain Market Competitive Landscape
The Saudi Arabia Automotive Drivetrain Market is characterized by a dynamic mix of regional and international players. Leading participants such as Toyota Motor Corporation, Nissan Motor Co., Ltd., General Motors Company, Ford Motor Company, Hyundai Motor Company, Kia Corporation, Volkswagen AG, BMW AG, Mercedes-Benz Group AG, Honda Motor Co., Ltd., Mitsubishi Motors Corporation, Tata Motors Limited, Changan Automobile, BYD Company Limited, Geely Automobile Holdings Limited, Lucid Group, Inc., Ceer (Saudi Electric Vehicle Company), ZF Friedrichshafen AG, BorgWarner Inc., Magna International Inc. contribute to innovation, geographic expansion, and service delivery in this space.
Toyota Motor Corporation
1937
Aichi, Japan
Nissan Motor Co., Ltd.
1933
Yokohama, Japan
General Motors Company
1908
Detroit, Michigan, USA
Ford Motor Company
1903
Dearborn, Michigan, USA
Hyundai Motor Company
1967
Seoul, South Korea
Company
Establishment Year
Headquarters
Group Size (Large, Medium, or Small as per industry convention)
Revenue Growth Rate (Saudi Arabia Automotive Drivetrain Segment)
Market Penetration Rate (Share of Drivetrain Sales in Saudi Arabia)
Local Manufacturing Footprint
Product Portfolio
eadth (ICE, Hy
id, EV, AWD, 4WD, etc.)
R&D Investment as % of Revenue
Saudi Arabia Automotive Drivetrain Market Industry Analysis
Growth Drivers
Increasing Vehicle Production:
The automotive sector in Saudi Arabia is projected to produce approximately 500,000 vehicles in future, reflecting a significant increase from 450,000 previously. This growth is driven by the government's Vision 2030 initiative, which aims to diversify the economy and reduce dependence on oil. The rise in vehicle production directly correlates with the demand for advanced drivetrains, as manufacturers seek to enhance performance and efficiency in their offerings.
Rising Demand for Fuel Efficiency:
With fuel prices fluctuating, the demand for fuel-efficient vehicles is surging. In future, the average fuel consumption for new vehicles is expected to decrease to 6.5 liters per 100 km, down from 7.0 liters previously. This trend is pushing manufacturers to invest in innovative drivetrain technologies that enhance fuel efficiency, thereby driving market growth. The focus on sustainability is also influencing consumer preferences towards more efficient vehicles.
Government Initiatives for Local Manufacturing:
The Saudi government has introduced several initiatives to boost local manufacturing, including the National Industrial Development and Logistics Program. In future, the government aims to increase local content in automotive production to 50%, up from 30% previously. This initiative not only supports the automotive drivetrain market but also encourages foreign investments, fostering a competitive environment for local manufacturers to thrive.
Market Challenges
High Import Tariffs on Components:
The automotive industry in Saudi Arabia faces significant challenges due to high import tariffs on drivetrain components, which can reach up to 20%. This increases the overall cost of production for local manufacturers, making it difficult to compete with imported vehicles. As a result, many companies are forced to pass these costs onto consumers, potentially stifling market growth and limiting access to advanced technologies.
Limited Local Supplier Base:
The lack of a robust local supplier base for automotive components poses a significant challenge. Currently, only about 15% of components are sourced locally, with the remainder imported. This reliance on foreign suppliers not only increases costs but also affects the supply chain's reliability. In future, addressing this issue will be crucial for enhancing the competitiveness of the Saudi automotive drivetrain market and ensuring sustainable growth.
Saudi Arabia Automotive Drivetrain Market Future Outlook
The Saudi Arabia automotive drivetrain market is poised for transformative growth, driven by technological advancements and a shift towards sustainable practices. As the government continues to promote local manufacturing and electric vehicle adoption, the market is expected to see increased investments in research and development. Additionally, the integration of smart technologies and automation in manufacturing processes will enhance efficiency and product quality, positioning the market favorably for future expansion and innovation.
Market Opportunities
Growth in Aftermarket Services:
The aftermarket services sector is projected to grow significantly, with an estimated value of SAR 5 billion in future. This growth presents opportunities for companies to offer maintenance, repair, and upgrade services for drivetrains, catering to the increasing number of vehicles on the road and enhancing customer loyalty through quality service.
Investment in R&D for Advanced Drivetrains:
With the global shift towards electric and hy
id vehicles, there is a substantial opportunity for investment in research and development. In future, it is anticipated that R&D spending in the automotive sector will reach SAR 1 billion, focusing on developing advanced drivetrain technologies that improve performance and sustainability, thus attracting both local and international partnerships.
Please Note: It will take 5-7 business days to complete the report upon order confirmation.
Table of Contents
86 Pages
- 1. Saudi Arabia automotive drivetrain Size, Share, Growth Drivers, Trends, Opportunities & – Market Overview
- 1.1. Definition and Scope
- 1.2. Market Taxonomy
- 1.3. Market Growth Rate
- 1.4. Market Segmentation Overview
- 2. Saudi Arabia automotive drivetrain Size, Share, Growth Drivers, Trends, Opportunities & – Market Size (in USD Bn), 2019–2024
- 2.1. Historical Market Size
- 2.2. Year-on-Year Growth Analysis
- 2.3. Key Market Developments and Milestones
- 3. Saudi Arabia automotive drivetrain Size, Share, Growth Drivers, Trends, Opportunities & – Market Analysis
- 3.1. Growth Drivers
- 3.1.1. Increasing Vehicle Production
- 3.1.2. Rising Demand for Fuel Efficiency
- 3.1.3. Government Initiatives for Local Manufacturing
- 3.1.4. Expansion of Electric Vehicle Market
- 3.2. Restraints
- 3.2.1. High Import Tariffs on Components
- 3.2.2. Limited Local Supplier Base
- 3.2.3. Regulatory Compliance Costs
- 3.2.4. Technological Advancements Outpacing Adoption
- 3.3. Opportunities
- 3.3.1. Growth in Aftermarket Services
- 3.3.2. Investment in R&D for Advanced Drivetrains
- 3.3.3. Partnerships with Global OEMs
- 3.3.4. Development of Sustainable Drivetrain Solutions
- 3.4. Trends
- 3.4.1. Shift Towards Hybrid and Electric Drivetrains
- 3.4.2. Increasing Automation in Manufacturing
- 3.4.3. Focus on Lightweight Materials
- 3.4.4. Integration of Smart Technologies
- 3.5. Government Regulation
- 3.5.1. Emission Standards Compliance
- 3.5.2. Incentives for Electric Vehicle Adoption
- 3.5.3. Local Content Requirements
- 3.5.4. Safety Regulations for Automotive Components
- 3.6. SWOT Analysis
- 3.7. Stakeholder Ecosystem
- 3.8. Competition Ecosystem
- 4. Saudi Arabia automotive drivetrain Size, Share, Growth Drivers, Trends, Opportunities & – Market Segmentation, 2024
- 4.1. By Type (in Value %)
- 4.1.1. Manual Transmission
- 4.1.2. Automatic Transmission
- 4.1.3. CVT (Continuously Variable Transmission)
- 4.1.4. Dual-Clutch Transmission
- 4.1.5. Others
- 4.2. By Vehicle Type (in Value %)
- 4.2.1. Passenger Cars
- 4.2.2. SUVs
- 4.2.3. Light Commercial Vehicles (LCVs)
- 4.2.4. Heavy Commercial Vehicles (HCVs)
- 4.2.5. Others
- 4.3. By Component (in Value %)
- 4.3.1. Gearboxes
- 4.3.2. Driveshafts
- 4.3.3. Differentials
- 4.3.4. Axles
- 4.4. By Sales Channel (in Value %)
- 4.4.1. OEMs
- 4.4.2. Aftermarket
- 4.4.3. Online Retail
- 4.4.4. Distributors
- 4.5. By Price Range (in Value %)
- 4.5.1. Budget (Below SAR 50,000)
- 4.5.2. Mid-Range (SAR 50,000–120,000)
- 4.5.3. Premium (SAR 120,000–150,000)
- 4.5.4. Luxury (Above SAR 150,000)
- 4.6. By Region (in Value %)
- 4.6.1. Central Region
- 4.6.2. Eastern Region
- 4.6.3. Western Region
- 4.6.4. Northern Region
- 4.6.5. Southern Region
- 5. Saudi Arabia automotive drivetrain Size, Share, Growth Drivers, Trends, Opportunities & – Market Cross Comparison
- 5.1. Detailed Profiles of Major Companies
- 5.1.1. Toyota Motor Corporation
- 5.1.2. Nissan Motor Co., Ltd.
- 5.1.3. General Motors Company
- 5.1.4. Ford Motor Company
- 5.1.5. Hyundai Motor Company
- 5.2. Cross Comparison Parameters
- 5.2.1. Revenue
- 5.2.2. Market Share
- 5.2.3. Production Capacity
- 5.2.4. R&D Investment
- 5.2.5. Number of Employees
- 6. Saudi Arabia automotive drivetrain Size, Share, Growth Drivers, Trends, Opportunities & – Market Regulatory Framework
- 6.1. Industry Standards
- 6.2. Compliance Requirements and Audits
- 6.3. Certification Processes
- 7. Saudi Arabia automotive drivetrain Size, Share, Growth Drivers, Trends, Opportunities & – Market Future Size (in USD Bn), 2025–2030
- 7.1. Future Market Size Projections
- 7.2. Key Factors Driving Future Market Growth
- 8. Saudi Arabia automotive drivetrain Size, Share, Growth Drivers, Trends, Opportunities & – Market Future Segmentation, 2030
- 8.1. By Type (in Value %)
- 8.2. By Vehicle Type (in Value %)
- 8.3. By Component (in Value %)
- 8.4. By Sales Channel (in Value %)
- 8.5. By Price Range (in Value %)
- 8.6. By Region (in Value %)
- Disclaimer
- Contact Us
Pricing
Currency Rates
Questions or Comments?
Our team has the ability to search within reports to verify it suits your needs. We can also help maximize your budget by finding sections of reports you can purchase.
