RIYADH: Hamed al-Rafidain, a Saudi HR worker, was pleased with the savings he got from an electric vehicle since his other car is one of the many gas-guzzling four-wheelers found 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.
Al-Iqtisadiyah, according to Saudi business news outlet, reported that even though still small compared to US and China, the EV market in this world’s largest oil exporter tripled last year up to almost 800 cars.
Rafidain stated “what motivated me into purchasing an electric vehicle were financial considerations”, he spends about SR2000 ($530) monthly on fueling his off-road car.
He also said that maintenance costs are lower than those of ordinary vehicles because they have no need for oil changes or replacements of brake-pads; instead there is some space under the bonnet where no engine exists.
This may be because it is predicted that Chinese EV giant BYD will dominate the market of Saudi Arabia while its global rival Tesla has not opened any dealership outlet in gulf kingdom.
With eight million residents, Riyadh experiences traffic jams that contribute to high pollution levels.
“Electric vehicles helps reduce global warming in cities.” Rafidain noted saying why he chose EV due environmental concerns
However, for just over $53,300 he purchased mostly trip-based BYD for his movements within the capital city.
The challenges of electrification –
Many people think their EVs are suitable only for short journeys due to lack of charging infrastructure and huge size of Saudi Arabia compared with others countries where they replace conventional ones.
Accordingly “it was a gamble especially because the infrastructure was not yet established” Rafidain pointed out when talking about battery range only about 400 km (250 miles).
While BYD and Lucid put charging stations in the customers’ houses, Electric Vehicle Infrastructure Company (Eviq) is working to ensure that they are available countrywide with up to 5000 by 2030.
Saudi Arabia’s fuel prices are among the lowest in most parts of the world, at $0.62 per litre.
The arrival of BYD is expected to make EVs more affordable but a vehicle from Lucid which built a factory in Jeddah last year after a billion-dollar Saudi investment costs $92,000.
According to Hossam Iraqi, an expert in industry, SV’s low purchasing power has made them less popular EVs especially as regards their size and performance under high temperatures.
“Most current electric vehicle production is small to medium-sized, which does not suit the needs of large Saudi families,” he said also mentioning adverse effect on battery efficiency caused by heat characteristic for Gulf region.
The surge within Saudi –
Additionally “Huge demand locally and internationally means that this year there will be many electric vehicles sold” said Hassan Mohammed, salesman speaking during an exposition in the North Riyadh where Saudis have been testing cars.
On the side report from Al-Iqtisadiyah indicated that official statistics show imports of merely 779 EVs into Saudi Arabia increased significantly from 210 in previous year were.
Domestic production has also been boosted in the country
Saudi Arabia’s sovereign wealth fund, PIF, currently owns 60 percent of Lucid and has also signed an agreement with Hyundai from South Korea which allows them to establish a plant in Saudi Arabia for both electric cars and petrol engine vehicles.
Also, CEER, the Saudi EV brand launched in 2022, hopes to begin production in 2025.
Earlier this year, Saudi Industry Minister Bandar al-Kharif asserted that the country was looking towards manufacturing 300000 electric vehicles annually without mentioning the timeline.
He also informed that Riyadh was negotiating with battery manufacturers as it aims at carbon neutrality by 2050.
However, there are still people who prefer hybrid vehicles since they can go long distances by using batteries as well as petroleum products.
“Power balances between electricity and gasoline are economical and convenient,” Omar El-Shami said when he plugged in his wife’s car which he had purchased himself being an Egyptian pharmacist aged forty-three years old.
“He said:” Things may change later on.
