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In fuel-guzzling Saudi Arabia, electric cars pique interest

July 25, 2024
in Business & Finance
In fuel-guzzling Saudi Arabia, electric cars pique interest

RIYADH: For Hamed al-Rafidain, a Saudi human resources worker, an electric vehicle offers welcome savings, especially since his other car is a fuel-guzzling four-wheeler favoured by motorists in the desert kingdom.

The 39-year-old is part of a small but growing EV consumer base in Saudi Arabia, which hopes to become a hub for the technology as it seeks to diversify its economy away from oil.

Although the EV market in the world’s largest oil exporter remains small compared with the United States and China, it tripled last year to nearly 800 cars, according to Saudi business news outlet Al-Iqtisadiyah.

“What drove me to buy an electric vehicle was financial considerations,” said Rafidain, who spends up to 2,000 riyals ($530) a month on fuel for his off-road vehicle.

“Maintenance costs are also lower compared to a conventional vehicle, with no oil changes and no brake-pad replacements,” he added, pointing to the engine-free storage space under the hood of his new car.

DFML shares progress on EV manufacturing, share price hits upper limit

Chinese EV giant BYD is expected to dominate the Saudi market. Its global rival Tesla of the United States has no dealerships in the Gulf kingdom.

With eight million residents, Riyadh experiences traffic jams that contribute to high pollution levels.

Rafidain said he chose an EV because of environmental concerns, noting electric vehicles “help reduce global warming in cities”.

For a little over $53,300, he bought a BYD that he mostly uses for short trips within the capital.

EV challenges

A lack of charging infrastructure and Saudi Arabia’s vast size mean that many view their EVs as suitable for shorter trips, rather than replacements for conventional vehicles.

Tags: electric carSaudi Arabia
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