According to media reports, Chinese automaker BYD is planning a major expansion in Saudi Arabia, aiming to leverage the country's ambitions to become a new hub for new energy vehicles (NEVs) and the momentum generated by Tesla's recent market entry.
Jerome Saigot, BYD's General Manager for Saudi Arabia, stated that the company entered the Saudi market last year and currently operates three showrooms. BYD plans to open seven more by the second half of 2026. Saigot, a former executive at Nissan and Great Wall Motors, joined BYD in April this year.
BYD expects to sell more than 5,000 vehicles in Saudi Arabia in 2025. While this figure is small compared to BYD's global sales volume, it is significant for the Saudi market, where large-displacement, fuel-intensive vehicles still dominate and electric vehicle (EV) adoption has been slow.
In an interview with Bloomberg News, Saigot said, "The Saudi market is complex. It requires both agility and long-term vision. Our goal is far beyond selling 5,000 or 10,000 vehicles per year."
Saudi Arabia is heavily investing in the EV industry through its Public Investment Fund (PIF) as part of a broader strategy to cut emissions, reduce vehicle imports, and diversify the national economy. The PIF has injected capital into U.S.-based EV manufacturer Lucid to support its establishment of the first car manufacturing plant in Saudi Arabia. The fund has also launched its own EV brand, Ceer, and created joint ventures to develop EV charging infrastructure.
However, data from PwC shows that EVs currently account for just over 1% of total car sales in Saudi Arabia. High purchase costs, limited charging infrastructure, and extreme temperatures remain major obstacles to wider EV adoption in the country.
In April, Tesla opened its first showroom in Riyadh, the Saudi capital, joining BYD, Geely, and other automakers in competing for the growing market. Saigot views Tesla's entry as beneficial for the industry, as it raises consumer awareness of EVs. "The more Tesla spends on marketing, the better it is for us," he said.
In recent months, BYD has begun to overtake Tesla in various markets. In April, BYD's battery electric vehicle (BEV) sales in Europe surpassed Tesla's for the first time. Some analysts even predict that BYD could overtake Tesla in global BEV sales by the end of the year.
