The China Mail - In fuel-guzzling Saudi Arabia, electric cars pique interest

USD -
AED 3.672497
AFN 63.515562
ALL 83.12797
AMD 366.308748
ANG 1.790403
AOA 917.502526
ARS 1479.243508
AUD 1.450652
AWG 1.80125
AZN 1.69913
BAM 1.721352
BBD 2.010121
BDT 122.760077
BGN 1.69088
BHD 0.376429
BIF 2979.101666
BMD 1
BND 1.296498
BOB 6.896673
BRL 5.192678
BSD 0.998064
BTN 94.44464
BWP 13.654226
BYN 2.812785
BYR 19600
BZD 2.007217
CAD 1.42399
CDF 2268.9996
CHF 0.811755
CLF 0.023334
CLP 918.380371
CNY 6.790502
CNH 6.81023
COP 3444
CRC 454.317424
CUC 1
CUP 26.5
CVE 97.047175
CZK 21.331301
DJF 177.723992
DKK 6.579675
DOP 58.501509
DZD 133.465986
EGP 49.619801
ERN 15
ETB 160.903882
EUR 0.88015
FJD 2.244199
FKP 0.75995
GBP 0.758965
GEL 2.640308
GGP 0.75995
GHS 11.17849
GIP 0.75995
GMD 72.499188
GNF 8744.823823
GTQ 7.613096
GYD 208.766062
HKD 7.839705
HNL 26.705451
HRK 6.630796
HTG 130.494669
HUF 312.586503
IDR 17932.35
ILS 2.980591
IMP 0.75995
INR 94.51045
IQD 1307.42827
IRR 1375049.999937
ISK 126.919687
JEP 0.75995
JMD 157.189944
JOD 0.708969
JPY 161.8265
KES 129.502101
KGS 87.450051
KHR 4009.804482
KMF 434.000145
KPW 900.00035
KRW 1543.319738
KWD 0.30967
KYD 0.83172
KZT 485.697941
LAK 21907.234642
LBP 89385.366197
LKR 336.710086
LRD 181.790178
LSL 16.592853
LTL 2.95274
LVL 0.60489
LYD 6.418764
MAD 9.383647
MDL 17.675508
MGA 4169.142012
MKD 54.229906
MMK 2099.534862
MNT 3583.823146
MOP 8.060817
MRU 39.906531
MUR 48.189494
MVR 15.449943
MWK 1730.58559
MXN 17.61135
MYR 4.113698
MZN 63.909781
NAD 16.592853
NGN 1370.599182
NIO 36.727204
NOK 9.860895
NPR 151.11027
NZD 1.772215
OMR 0.384507
PAB 0.998064
PEN 3.384879
PGK 4.378573
PHP 61.341026
PKR 277.579134
PLN 3.77293
PYG 6087.836648
QAR 3.628322
RON 4.607901
RSD 103.324981
RUB 74.901959
RWF 1466.108669
SAR 3.747299
SBD 8.051953
SCR 14.807516
SDG 600.000095
SEK 9.74825
SGD 1.296969
SHP 0.746601
SLE 24.860893
SLL 20969.503664
SOS 570.407629
SRD 37.460004
STD 20697.981008
STN 21.56282
SVC 8.732617
SYP 110.532098
SZL 16.590316
THB 33.4025
TJS 9.266854
TMT 3.5
TND 2.966907
TOP 2.40776
TRY 46.515095
TTD 6.767294
TWD 31.809504
TZS 2620.689008
UAH 44.799222
UGX 3682.450273
UYU 39.843337
UZS 12001.408203
VES 620.752985
VND 26330.5
VUV 119.820737
WST 2.777776
XAF 577.322754
XAG 0.017474
XAU 0.000251
XCD 2.70255
XCG 1.798715
XDR 0.718004
XOF 577.325295
XPF 104.963915
YER 238.624977
ZAR 16.55295
ZMK 9001.201282
ZMW 17.989791
ZWL 321.999592
  • CMSC

    -0.0450

    22.065

    -0.2%

  • RBGPF

    0.0000

    61.3

    0%

  • JRI

    -0.0600

    12.57

    -0.48%

  • BCC

    5.8600

    77.66

    +7.55%

  • BCE

    0.1600

    23.2

    +0.69%

  • NGG

    1.2600

    82.83

    +1.52%

  • CMSD

    0.0600

    22.02

    +0.27%

  • RIO

    -1.5500

    94.03

    -1.65%

  • RYCEF

    -0.1600

    18

    -0.89%

  • GSK

    -0.9800

    51.09

    -1.92%

  • RELX

    -0.0600

    31.15

    -0.19%

  • VOD

    -0.2400

    13.81

    -1.74%

  • BTI

    0.6500

    61.39

    +1.06%

  • BP

    -1.4700

    37.86

    -3.88%

  • AZN

    2.0000

    183.02

    +1.09%

In fuel-guzzling Saudi Arabia, electric cars pique interest
In fuel-guzzling Saudi Arabia, electric cars pique interest / Photo: © AFP

In fuel-guzzling Saudi Arabia, electric cars pique interest

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.

Text size:

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.

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.

Using an EV for travel outside the city was a "gamble, especially since the infrastructure is still underdeveloped", Rafidain said, noting the range of current batteries is only about 400 kilometres (250 miles).

While BYD and Lucid install charging stations directly at customers' homes, the Electric Vehicle Infrastructure Company (Eviq) is working to place them elsewhere, aiming for 5,000 across the country by 2030.

EV prices remain high in Saudi Arabia, where fuel costs are lower than in most countries, with a litre of petrol costing $0.62.

A vehicle from Lucid, which opened a factory in Jeddah last year after a billion-dollar Saudi investment, costs $92,000, but the arrival of BYD is expected to make EVs more affordable.

Industry expert Hossam Iraqi said EVs are less popular among Saudis owing to their size and performance in extreme heat.

"Most current electric vehicle production is small to medium-sized, which does not suit the needs of large Saudi families," he said, adding the Gulf region's extreme heat has an impact on battery efficiency.

- Saudi surge -

Salesman Hassan Mohammed expects strong EV sales this year, as demand grows at home and abroad.

"More than one car brand has opened its doors in the kingdom and now offers after-sales service, which has encouraged consumers," he said at an exhibition in northern Riyadh, where Saudis test-drove cars.

Al-Iqtisadiyah reported in April that Saudi Arabia imported only 779 EVs in 2023, up from 210 the previous year, citing official Saudi statistics.

The country is also ramping up domestic production.

Saudi Arabia's sovereign wealth fund, PIF, now controls 60 percent of Lucid and has secured a deal with South Korea's Hyundai to establish a plant in the kingdom for both EVs and petrol-powered cars.

Additionally, Saudi EV brand CEER, launched in 2022, plans to start production in 2025.

Earlier this year, Saudi Industry Minister Bandar al-Kharif said the country was aiming to produce 300,000 EVs annually, without giving a timeline.

Riyadh, targeting carbon neutrality by 2050, was also in talks with battery producers, he said.

For now, some still prefer hybrid vehicles, which use both batteries and petrol to go longer distances.

"The balance between electricity and gasoline is economical and convenient," said Omar el-Shami, a 43-year-old Egyptian pharmacist, as he charged the car he bought for his wife.

"Things may change in the future," he said.

Y.Parker--ThChM