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RIYADH: 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.