Asian Auto Market | Saudi Arabia February 2025: Chinese Brands Face Mixed Fortunes

03/31 2025 393

According to data compiled by ChiNeng Technology, Saudi Arabia's new light vehicle sales reached 72,388 units in February 2025, marking a 14% year-on-year increase. Cumulatively, sales for the first two months of the year stood at 140,311 units, up 10.9% from the same period last year.

Toyota topped the market with a 26.2% share, followed by Hyundai and Nissan. Among Chinese brands, sales declines were observed for Changan, Geely, and MG, but Jietu bucked the trend with a remarkable 75.5% increase.

Sedan models led the sales rankings, with the Hyundai Accent leading the pack, showcasing a 36.9% increase, reflecting Saudi Arabia's preference for efficient powertrains.

This article delves into market dynamics and their impact on Chinese brands, examining sales overview, powertrain trends, brand performance, and model competition patterns. We provide insights into technology and strategy within the industry.

01

Sales Overview and Brand Performance

● In February 2025, Saudi Arabia's new light vehicle market achieved sales of 72,388 units, up 14% year-on-year, continuing the recovery momentum from 2024.

● Cumulative sales for the first two months totaled 140,311 units, a 10.9% increase from the same period in 2024.

This growth is attributed to stable oil prices (projected to remain above $80 per barrel in 2025), increased government spending, and enhanced consumer confidence.

While SUVs continue to dominate the market (accounting for 57.7% in 2024), sedan sales stood out in February, indicating a diversified market demand.

The Saudi market remains heavily reliant on internal combustion engine (ICE) vehicles, with electric vehicle (EV) sales comprising only 1%-2% of the total (around 779 units) in 2024.

In February 2025, separate statistics for the Toyota Camry HEV demonstrated the potential of hybrid vehicles, albeit with a low market share.

The slow growth of EVs is attributed to limited charging infrastructure (only 104 stations in 2023, with plans to increase to 5,000 by 2025) and low consumer awareness.

ChiNeng Technology predicts that with the promotion of EV infrastructure under 'Vision 2030', the penetration of hybrid and pure electric vehicles will gradually increase.

Brand Sales Performance

◎ Toyota: Sold 18,930 units in February, accounting for a 26.2% market share, up 15.5% year-on-year. Cumulative sales reached 38,310 units, maintaining its lead due to reliability and brand recognition.

◎ Hyundai: Sold 10,867 units in February, representing 15% of the market, up 20.6% year-on-year. Cumulative sales were 21,785 units, driven by the success of its sedan lineup.

◎ Nissan: Sold 6,332 units in February, holding an 8.7% market share, up 35.1% year-on-year. Cumulative sales were 10,854 units.

◎ Kia: Sold 5,233 units in February, accounting for 7.2% of the market, up 8.9% year-on-year. Cumulative sales were 11,329 units, displaying stable performance.

◎ Ford: Sold 4,027 units in February, representing 5.6% of the market, up 28.6% year-on-year. Cumulative sales were 7,670 units, with the brand rising in the rankings.

◎ Isuzu: Sold 3,626 units in February, accounting for 5% of the market, down slightly by 0.6% year-on-year. Cumulative sales were 6,906 units, indicating stable demand for commercial vehicles.

◎ Mazda: Sold 3,269 units in February, representing 4.5% of the market, up 74.5% year-on-year. Cumulative sales were 7,009 units, showing significant growth.

● Chinese brands exhibited mixed performance in the Saudi market:

◎ Changan: Sold 2,153 units in February, accounting for 3% of the market, down 9.4% year-on-year. Cumulative sales were 3,796 units.

◎ Geely: Sold 2,013 units in February, representing 2.8% of the market, down 20.6% year-on-year. Cumulative sales were 3,474 units.

◎ MG: Sold 1,781 units in February, accounting for 2.5% of the market, down 40.6% year-on-year. Cumulative sales were 3,531 units, indicating a notable decline in brand competitiveness.

◎ Jietour: Sold 1,437 units in February, representing 2% of the market, up 75.5% year-on-year. Cumulative sales were 2,637 units, showcasing impressive performance.

◎ Haval: Sold 965 units in February, accounting for 1.3% of the market, up 43.4% year-on-year. Cumulative sales were 1,493 units, with steady growth.

◎ Great Wall: Sold 235 units in February, representing 0.3% of the market, up 7.3% year-on-year. Cumulative sales were 417 units, with a limited market share.

◎ Tank: Sold 169 units in February, accounting for 0.2% of the market. Cumulative sales were 283 units, indicating an initial stage of development.

Chinese brands face overall challenges, with declines for Changan, Geely, and MG potentially attributed to product positioning that does not align with Saudi consumer preferences (such as for SUVs and premium sedans) and inadequate after-sales service networks.

02

Model Sales and Competitive Landscape

● The February model rankings were dominated by sedans:

◎ Hyundai Accent: Sold 3,646 units in February, up 36.9% year-on-year. Cumulative sales were 6,637 units, ranking first.

◎ Kia Pegas: Sold 3,036 units in February, up 37.9% year-on-year. Cumulative sales were 5,163 units, ranking second.

◎ Nissan Sunny: Sold 2,848 units in February, up 76% year-on-year. Cumulative sales were 4,272 units, ranking third.

◎ Ford Taurus: Sold 2,219 units in February, up 47.5% year-on-year. Cumulative sales were 3,984 units, ranking fourth.

◎ Toyota Camry: Sold 2,214 units in February, up 19.2% year-on-year. Cumulative sales were 4,862 units, ranking fifth.

◎ Toyota Yaris Sedan: Sold 2,214 units in February, down 34.7% year-on-year. Cumulative sales were 5,286 units, falling to sixth place.

◎ Toyota Hilux: Sold 2,072 units in February, down 17.8% year-on-year. Cumulative sales were 4,077 units, ranking seventh.

◎ Hyundai Elantra: Sold 1,972 units in February, up 34.1% year-on-year. Cumulative sales were 4,801 units, ranking eighth.

◎ Mazda 6: Sold 1,928 units in February, up 339.2% year-on-year. Cumulative sales were 4,215 units, ranking ninth.

◎ Toyota Corolla: Sold 1,879 units in February, up 7.3% year-on-year. Cumulative sales were 3,586 units, ranking tenth.

Competitive Landscape

Sedans dominated the top six sales in February, reflecting Saudi consumers' preference for economical and cost-effective models.

◎ The strong performance of the Hyundai Accent and Kia Pegas benefited from Korean brands' technological advantages and price competitiveness in the compact sedan segment.

◎ The growth of the Nissan Sunny and Mazda 6 showcased the attractiveness of Japanese brands in terms of performance and design.

◎ The decline of the Toyota Yaris Sedan might be linked to market adjustments during the transition to new models, while the Toyota Hilux, as the only pickup truck on the list, indicates that while demand for SUVs and commercial vehicles remains robust, it was slightly weaker in February.

◎ Chinese brands failed to enter the top ten models, suggesting that their product competitiveness in the Saudi market still needs improvement.

ChiNeng Technology believes that Chinese brands must optimize their product matrices and increase investment in localized research and development to compete with formidable brands like Toyota and Hyundai.

Summary

In February 2025, Saudi Arabia's auto market exhibited vitality, with sales growth and a surge in sedan sales. Toyota, Hyundai, and Nissan led the way with their brand strength and product advantages, while Chinese brands displayed mixed trends. The growth of Jietou and Haval offered hope for Chinese automakers, but the declines of Changan, Geely, and MG highlighted the challenges they face in local adaptation and market penetration.

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