BYD Plans to Expand Its Presence in Saudi Arabia

According to foreign media reports, Chinese automaker BYD plans to intensify its expansion efforts in Saudi Arabia. Taking advantage of Tesla's entry into the Saudi market, BYD aims to capitalize on the country's development as a new hub for new energy vehicles. Jerome Saigot, BYD's regional general manager for Saudi Arabia, stated that the company entered the Saudi market last year and has currently opened three showrooms, with plans to add seven more by the second half of 2026. Saigot, who previously worked at Nissan and Great Wall Motors, joined BYD in April this year. BYD expects to sell over 5,000 vehicles in Saudi Arabia this year. Although this figure is insignificant compared to BYD's global total sales, it holds considerable weight in the Saudi market, which is still dominated by high-displacement, fuel-inefficient vehicles, with the adoption of electric vehicles progressing slowly. Saigot mentioned in an interview with Bloomberg News: 'The situation in the Saudi market is complex, requiring both swift action and grand strategic vision. Our goal is not merely to remain at a sales level of 5,000 or 10,000 vehicles a year.' Saudi Arabia is heavily investing in the electric vehicle industry through its Public Investment Fund (PIF), as part of the country's overall strategy to reduce emissions, cut vehicle imports, and diversify its economy. The PIF has invested in the American electric vehicle manufacturer Lucid to support the establishment of its first automotive manufacturing plant in Saudi Arabia. Additionally, the fund has created its own electric vehicle brand, Ceer, and formed joint ventures to advance the construction of new energy vehicle charging infrastructure. However, data from PwC indicates that electric vehicles currently account for just over 1% of total vehicle sales in Saudi Arabia. High purchase costs, insufficient charging infrastructure, and extreme temperatures are all factors hindering the widespread adoption of electric vehicles in the country. In April, Tesla opened its first showroom in Riyadh, competing with BYD, Geely, and other automakers in the Saudi market. Saigot believes that Tesla's entry is beneficial for the electric vehicle industry as it helps raise consumer awareness of electric vehicles. He stated, 'The more Tesla invests in marketing, the more advantageous it is for us.' In recent months, BYD has gradually gained an advantage in competition with Tesla. In April, BYD's sales of pure electric vehicles in Europe surpassed Tesla for the first time. Some analysts also predict that BYD's global sales of pure electric vehicles this year may exceed those of Tesla.