BYD eyes Saudi expansion after Tesla entry

Chinese automaker BYD Co. plans to expand its operations in Saudi Arabia by adding seven new showrooms by the second half of 2026.

The company currently has three showrooms in the country, having entered the market in 2024.

BYD aims to sell over 5,000 vehicles in Saudi Arabia this year.

According to PwC, EVs represent just over 1% of total car sales in Saudi Arabia.

They face challenges such as high costs, insufficient charging infrastructure, and extreme temperatures.

Tesla, which opened its first showroom in Riyadh in April, is among the automakers competing for market share, alongside BYD and Geely.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Saudi Arabia’s ambitious EV transformation faces significant infrastructure hurdles

Saudi Arabia’s EV market shows dramatic growth potential but from a very low base, as EVs currently represent just 1% of total car sales despite the kingdom’s ambitious goal to reach 30% adoption by 2030 1.

The infrastructure gap is substantial, with only 101 charging stations recorded in 2024, while plans call for expanding to 50,000 stations by 2030, a significant increase in just six years 2.

This expansion is backed by massive investment, with the government committing $40 billion toward EV infrastructure and manufacturing, positioning the sector to reach a projected market value of $4.8 billion by decade’s end 3.

Consumer interest is shifting significantly, with 65% of Saudi respondents now considering an EV purchase within the next three years, despite the practical challenges of extreme heat affecting battery performance 4.

The country has experienced remarkable early-stage growth, with EV registrations surging 425% between 2021 and 2023, growing from just 375 to over 12,000 vehicles 4.

2️⃣ Chinese EV makers gaining global momentum against established players

BYD’s European breakthrough, outselling Tesla for the first time in April 2025, demonstrates how Chinese manufacturers are successfully expanding beyond their home market despite international trade tensions 5.