Middle East & Africa Passenger Electric Vehicle Market Size & Share 2026-2035

Middle East & Africa Passenger Electric Vehicle Market Size

Middle East & Africa passenger electric vehicle market was estimated at USD 3.1 billion in 2025. The market is expected to grow from USD 3.6 billion in 2026 to USD 9.1 billion in 2035, at a CAGR of 11% according to latest report published by Global Market Insights Inc.

The Middle East Electric Vehicle (EV), particularly the Electric Vehicle (EV) passenger car market, is experiencing pronounced growth from infancy to being in a growth phase, primarily because of the Economic Diversification Goals outlined in Saudi’s Vision 2030 and the UAE’s Net Zero 2050 initiative. Generous disposable income levels, government incentives, and increasing consumer awareness have helped drive EV purchasing in the region's rapidly expanding consumer market. Expanding and localizing infrastructure has been one of the main trends shaping EV distribution across the region.
 

Early adopters benefited from free charging; the market is shifting toward a paid ecosystem. Electromin is deploying a large network, and SASCO is installing DC fast chargers. The EV market will also benefit from the influx of Chinese manufacturers, and the rising cost of fuel has it in a position to create an advantage for EV owners through a Total Cost of Ownership (TCO) analysis. EV owners will also have a TCO advantage as a result of the fact that Saudi Arabia is transitioning from an economy that is entirely based on imports, to an emerging manufacturing centre for EV manufacturers through initiatives such as Ceer Motors and through alliances with Lucid Motors.
 

The level of growth for the Middle East EV market is expected to continue for the next five years following the Covid pandemic, but it did initially experience a decline during early 2020 as a result of the disruption that occurred within supply chains, and the overall economic uncertainty resulting from the Covid-19 pandemic. With the exception of developing its EV Strategy, Saudi Arabia and UAE governments have implemented EV Promises and committed to significantly increasing their EV charging infrastructure by increasing investment in sophisticated charging networks and prioritising local manufacturing of EVs as part of their nations long-term strategy for achieving diversified economies. In Saudi Arabia, the government has reported almost a 10 times growth in EV sales in 2022 compare to 2019.
 

The expansion of the electric vehicle market in the United Arab Emirates is gathering momentum as a result of robust government initiatives created to support sustainable mobility and decrease carbon footprint. The National Electric Vehicles Policy was created by the UAE government to provide a framework for adopting electric vehicles (EVs), developing charging infrastructure, and promoting private-sector investment in the electric vehicle ecosystem. This policy is in accordance with the UAE’s plan to achieve 50% of all vehicles on the roads being electric by 2050 while reducing emissions from the transport sector. 
 

Saudi Arabia has become an important EV market within the Middle East due to its Vision 2030 program that has an objective of diversifying the economy and improving sustainability. Through the Saudi Green Initiative, the government plans to electrify 30% of vehicles in Riyadh by 2030 and has pledged sizable investments to enhance EV infrastructure, manufacture EVs and provide financial incentives for purchasing EVs. The Public Investment Fund (PIF) has invested in many EV companies and supported domestic manufacturing of EVs, including establishing the manufacturing facility for Lucid Motors and creating Ceer, Saudi Arabia’s first EV brand.

Middle East & Africa Passenger Electric Vehicle Market Trends

Many Middle Eastern governments are taking steps towards electric mobility to lower carbon emissions and diversify their energy i.e UAE National Electric Vehicle Policy tied to the net zero emissions 2050 goal has a target of having electric vehicles comprise 50% of the vehicles on the roads by 2050. In support of this, the plan focuses on building (70,000+ charging infrastructures) and creating a regulatory framework to enable hotels, fleet vehicles and individual consumers to transition to electric vehicles.
 

Similarly, as part of its SGI and 2030 Vision, Saudi Arabia has a goal that 30% of the vehicles in the capital city, Riyadh, will be electric by 2030. This initiative supports the country’s broader efforts to reduce carbon emissions and diversify its economy and establish itself as a regional hub for manufacturing and EV charging infrastructure. To support this initiative the country plans to install over 5,000 fast EV chargers (via EVIQ) in order to meet this goal. Both combined global and domestic EV policy pushes are having a pronounced strengthening influence on the demand for EVs in the region.
 

Middle East countries are also investing heavily in domestic EV manufacturing with the intent to develop a local automotive ecosystem. The Public Investment Fund of Saudi Arabia is supporting the establishment of local EV manufacturing capabilities. The country has supported the launch of Ceer the domestic EV brand and have also provided support for the construction of the Lucid Motors' domestic manufacturing facility in KSA.
 

The governments in the Middle East have increased their emphasis on electric vehicle (EV) charging infrastructure development. In January 2026, Oman released its plans for transportation decarbonization with a target of achieving net zero by 2050. MAYS Motors will be the first company in Oman to manufacture an AI-enabled electric SUV, Mays Alive, designed to alleviate range anxiety and facilitate further adoption of EVs. This development, coupled with an increase in charging stations, is expected to reduce range anxiety and support higher levels of EV usage in cities throughout Oman and along major roads throughout the region.
 

Middle East & Africa Passenger Electric Vehicle Market Analysis

Based on vehicle, the MEA passenger electric vehicle market is divided into hatchback, sedan, SUV, and others. SUV segment dominated the market accounting by 56% in 2025 and is expected to grow at a CAGR of 11.5% from 2026 to 2035.
 

• The SUV segment dominates the electric vehicle market in the Middle East and Africa due to strong consumer preference for larger vehicles that offer higher ground clearance, premium comfort, and long-distance driving capability suitable for regional road conditions. To support the acceptance of EVs, governments in the region are promoting EV adoption through national electrification programs and investment in industry, which will drive additional development of electric SUVs to serve the local consumer market.
   
• For example, in August 2025, Ceer, an electric vehicle OEM based in Saudi Arabia and supported by the Saudi Public Investment Fund, announced that it was going to manufacture electric SUVs and sedans uniquely designed for GCC and Middle Eastern markets with the first deliveries to begin in 2026. This clearly demonstrates the local focus on developing EVs specific to the regional market.
   
• Growing demand for luxury electric sedans in major cities is encouraging global automakers to expand their presence across emerging African EV markets. For example, Smart Europe, a subsidiary of Mercedes‑Benz Group AG, introduced its lineup of luxury electric vehicles in Morocco, marking its first entry into the African market and signaling increasing interest among international manufacturers in expanding EV sedan offerings across the region.
   

Based on the application, the MEA passenger electric vehicle market is divided into personal and commercial. Personal segments dominated the market with 82% share in 2025, and the segment is expected to grow at a CAGR of 10.7% between 2026 to 2035.
 

• The personal EV segment is steadily growing in the Middle East and Africa as consumers adopt electric mobility due to factors such as increasing fuel-efficiency concerns, environmental awareness and government support for EVs. Countries like Qatar, the UAE and Saudi Arabia are actively promoting purchase and use of EVs through various programs, including Qatar's goal of converting 35 percent of vehicles in the country to EVs by 2030.
   
• The commercial EV segment is starting to grow as public transit and logistics fleets transition to EVs in order to decrease their total operational costs, reduce emissions and support long-term sustainability. Fleet electrification initiatives are being developed in many urban centers as part of a comprehensive approach to support sustainable transit and help achieve decarbonization targets for the region. In April 2025, Dubai Taxi Company entered into a partnership with Al-Futtaim Electric Mobility to provide 200 all-electric BYD Seal taxis in Dubai.
   

Based on propulsion, the MEA passenger electric vehicle market is divided into Battery Electric Vehicle (BEV), Fuel Cell Electric Vehicle (FCEV), and Plug-in Hybrid Electric Vehicle (PHEV). Battery Electric Vehicle (BEV) dominate the market and were valued at USD 1.68 billion in 2025.
 

• Growth is occurring in battery electric vehicle (BEV) platforms due to increased investments by both governments and manufacturers in facilities and capabilities for producing and customizing vehicles in the region. The additional assembly/manufacturing infrastructure created through these investments is expected to decrease the cost of vehicles manufactured/assembled in the region.
   
• This improves the overall supply chain operating efficiency associated with electric vehicle production and contributes to the increased acceptance of fully electric mobility in the region. M Glory Holding Group plans to build a 108,000 sq. ft. facility to produce electric vehicles by August 2025. This facility will provide local customization opportunities and provide both complete and incomplete vehicle assembly in the region to better serve consumers in the Middle East.
   
• PHEVs will provide an electric vehicle alternative with an internal combustion engine which will create value for consumers in the emerging electric vehicle markets of Africa and portions of the Middle East. To accelerate the pace of development within the automotive industry to support global progress to electric mobility, BMW announced plans in March 2026 to begin to produce plug-in hybrid vehicles in South Africa based on the demand for locally produced plug-in hybrid vehicles.
   

Based on price, the MEA passenger electric vehicle market is divided into entry, mid-range, and luxury. Entry levels dominate the market and were valued at USD 1.4 billion in 2025.
 

• Entry-level electric vehicles in the Middle Eastern market, specifically within the United Arab Emirates, are influenced by affordability & accessibility of an electric vehicle buyer. Compact vehicles produced by Chinese manufacturers, offer practical mileage and accessories for a reasonable cost. Current market trends for this segment include vehicles such as the BYD Seagull, JAC E30X and the BYD Qin Plus/Seadog 5.
   
• The luxury segment is targeted towards high-net-worth individuals with a focus on performance, exclusivity and advanced technology. Dubai has evolved into a destination for luxury & exotic high performance electric vehicles with manufacturers converting their focus from performance solely on design, innovation and brand prestige. For example, on May 2024, W Motors, headquartered in Dubai, is the first manufacturer in the region to produce a high-performance hypercar with the Lykan HyperSport, which incorporates cutting edge design.

The UAE dominated Middle East & Africa passenger electric vehicle market with revenue of USD 2.12 billion in 2025.
 

• The UAE has become a growing electric vehicle manufacturing hub with numerous manufacturers currently producing electric vehicles locally for the electric vehicle sector, electric buses and electric bicycles. Major initiatives include the Al-Damani electric SUV from M Glory, EAE automotive group's manufacture of specialty EV’s and NWTN's electric vehicle assembly facility in Abu Dhabi and other electric vehicle manufacturers are converting internal combustion vehicles to electric.
   
• Companies in the country are making potential efforts to make the market competitive in nature. For instance, in 2022, they inaugurated a facility in Dubai Industrial City, launching the first UAE-built electric vehicle, the Al-Damani DMV 300. A larger, permanent factory is scheduled to increase production capacity significantly, targeting over 50,000 cars per year. Similarly, NWTN Motors, A green mobility technology company that has set up a comprehensive electric vehicle assembly plant at the Khalifa Economic Zones Abu Dhabi (KEZAD), in collaboration with AD Ports Group.
   

Middle East & Africa passenger electric vehicle market in Saudi Arabia sold 5,886 units in 2025.
 

• Electric Vehicle (EV) Markets in Saudi Arabia are growing and evolving fast, powered by government initiatives, new energy vehicle manufacturing, and smart mobility investments that are also driving infrastructure development. The Saudi Arabian Government has been actively promoting the adoption of both personal and commercial EVs by providing incentives, constructing infrastructure, and establishing regulatory frameworks. An example is the recent introduction of the Lucid Air electric sedan as a police vehicle in February 2024, which signals a commitment to electrifying government vehicles and fleets, as well as increasing the visibility of EVs and supporting their adoption amongst consumers.
   
• Moreover, there is also growing interest in commercial and technologically advanced EVs, particularly for providing autonomous mobility solutions and advanced mobility technology. On July 25, 2025, Saudi Arabia will launch its first autonomous taxi in Riyadh using WeRide and GAC as an example of successful partnership between multiple agencies; this event marks progress through testing of autonomous vehicles while providing transportation alternatives and achieving the goals of Smart Mobility as outlined in Vision 2030. Ultimately, these types of initiatives demonstrate how the Kingdom wants to become a leading regional player in EV and battery technology, fleet electrification, and future urban transport systems.
   

The South Africa passenger electric vehicle market sales was estimated at 1,446 units in 2025.
 

• In South Africa, electric and hybrid vehicle production is becoming more of a priority, largely due to strong government support for local manufacturing and the focus on developing a competitive marketplace. The government has committed approximately 1 billion rand (~$54.27 million) towards encouraging the establishment of new energy vehicles and battery production facilities, as well as related manufacturing projects, with the objective of building a domestic EV manufacturing industry that can compete globally.
   
• The funding will also help local carmakers improve their facilities and produce hybrid or electric vehicles. It will now be much easier to make the switch to a more sustainable way of moving people around. South Africa is upgrading its production line and producing vehicles (especially EV) in the local market so that it will be able to compete with other manufacturers throughout the region in an market that is becoming more popular due to the increasing amount of demand for cleaner forms of transport from the consumers and from the government.
   

Middle East & Africa passenger electric vehicle market in Qatar grows significantly.
 

• Qatar is actively building its EV industry through strategic partnerships, manufacturing initiatives, and infrastructure development. There is a joint venture project between Qatari firms and their French counterparts worth €20 million that will build a facility to produce EVs locally, creating local EV production capabilities that will enable Qatar to develop a robust EV market and assist in achieving the country's long-term goals of sustainable mobility.
   
• In addition, international automakers like Volkswagen, Gaussin, and Yutong have entered into partnerships with government entities to help improve Qatar's automotive industry. The Qatari government has invested heavily in the country to build an EV infrastructure that will support the development of an EV manufacturing sector. The government has announced plans to build more than 1,000 publicly accessible charging stations by 2030; and Ashghal, the Public Works Authority of Qatar, is working with ABB E-mobility to establish a training centre in the Um Al Houl Free Zone to help create qualified workers who can support the transition of automakers to EVs.
   

Middle East & Africa Passenger Electric Vehicle Market Share

The top 7 companies in the market are BYD, Tesla, BMW, Mercedes-Benz, Porsche, Audi, and Hyundai. These companies hold around 65% of the market share in 2025.
 

• BYD is a major player in the Chinese EV manufacturing industry and has a large share of the MENA region, both with low and mid-range electric vehicles, by focusing on the cost of entry, battery technology, and customization. BYD has developed two models targeting value-based consumers in cities, the Seagull and the Qin Plus/Sealion 5.
   
• Tesla remains the leader in MENA and globally in the premium segment of the EV business due to their high-performance electric sedans and SUV models, and the company is also recognized for its advanced autonomous driving capabilities, supercharger stations, and widespread brand awareness among tech-savvy customers. Tesla continues to expand its footprint in the MENA region through additional dealerships and service centers.
   
• Hyundai has plans to continue building its electric vehicle presence throughout Middle East & Africa, but the company still has a strong foothold with hybrids and gasoline-powered vehicles currently sold in the region. To support its growth, Hyundai has a large dealership network across the region and offers several electric SUV and sedan models as an option for personal or business use.
   
• Mercedes-Benz offers consumers in the MEA region a wide selection of premium electric vehicle options through their EQ vehicle brand, with a focus on appealing to affluent urban customers through luxury, advanced connectivity, and quality standards. The company is establishing itself through joint ventures, localized launches of electric vehicles, and premium servicing infrastructure.
   
• BMW represents the premium electric vehicle (EV) market in Middle East & Africa. The company continues to focus on providing a balance of luxury, performance, and electrification within the MEA region with its i-series electric vehicles, plug-in hybrid models and establishing local manufacturing to further support the production of plug-in hybrids and regional supply chains in locations like South Africa.
   
• Porsche is focused on high-performance electric vehicles in the MEA market, targeting luxury and sports car enthusiasts. The Taycan and upcoming EV models highlight Porsche’s expertise in blending performance, design, and electrification. The brand’s appeal is driven by exclusivity, speed, and technological innovation, establishing it as a premium choice for niche EV buyers.
   
• Audi offers a range of electric vehicles under the e-tron series, combining premium luxury with advanced technology in the MEA region. The brand emphasizes comfort, design, and sustainability, positioning itself between mass-market and ultra-luxury EV segments. Audi’s regional strategy includes showroom expansion, marketing campaigns, and local partnerships to enhance adoption among premium urban consumers.
   

Middle East & Africa Passenger Electric Vehicle Market Companies

Major players operating in the passenger electric vehicle industry include:

• Audi
• BMW
• BYD
• Hyundai
• Kia
• Mercedes-Benz
• Nissan
• Porsche
• Tesla
• Volvo
   

• The electric vehicle marketplace in the Middle East and Africa is filled with a diverse and competitive mix of luxury global brands, local entrants to the EV space, and low-cost Chinese manufacturers. The luxury EV market is dominated by a number of premium brands including Mercedes-Benz, BMW, Audi and Porsche. As these brands have established brand prestige, advanced technologies and extensive marketing channels, they appeal primarily to high-income urban consumers that resided in urban centres such as Dubai, Riyadh and Abu Dhabi.
   
• With an emphasis on manufacturing affordable vehicles that deliver performance or cutting-edge technology, the lower-cost global brands target both premium and mid-range segments of the electric marketplace. In terms of producing high-performance electric vehicles Tesla continues to be the leader based upon its exclusive supercharging network. In addition to producing high-performance electric vehicles, Hyundai and BYD have been successful in developing competitively priced electric sedans and SUVs in the entry-level and mid range urban segments by also providing customer-tailored vehicles and expanding their regional presence.
   
• Local market participants are beginning to enter the electric vehicle marketplace with companies such as CEER (Saudi Arabia) developing regionally tailored electric sedans and SUVs as a result of the government's financial commitment to the Vision 2030 initiative, which will assist in developing greater domestic manufacturing capacities and creating jobs while reducing import dependency. The companies are involved in the manufacturing of electric sedans and SUVs that feature the latest in smart technologies and autonomous driving capabilities, and provide an excellent level of after-sales service.
   

Middle East & Africa Passenger Electric Vehicle Industry News

• In February 2026, the Federal Government took a major step toward advancing the electric vehicle ecosystem in Africa by signing a Memorandum of Understanding (MOU) with South Korea’s Asia Economic Development Committee (AEDC). The agreement aims to establish the continent’s first full-scale electric vehicle manufacturing plant, coupled with the development of critical infrastructure nationwide to support EV adoption.
   
• In August 2025, Indian EV manufacturer Omega Seiki Mobility announced plans to establish its first overseas EV assembly plant in the Jebel Ali Free Zone (Jafza), Dubai. The facility is designed to serve both the UAE and the broader Middle East market, reflecting the company’s strategy to expand its international footprint and capitalize on regional demand for electric commercial and passenger vehicles.
   
• In June 2025, California-based EV manufacturer Faraday Future (FF) announced the opening of its first Middle East base in Ras Al Khaimah, UAE, with the new facility located in the Al Hamra area of Ras Al Khaimah Economic Zone (RAKEZ). The facility is set to handle regional operations, assembly, and customization of Faraday Future EV models for local consumers, marking a strategic step toward expanding the brand’s presence in the Gulf market.
   
• In May 2025, Hyundai Motor Manufacturing Middle East (HMMME), a joint venture between the Public Investment Fund (PIF) of Saudi Arabia and Hyundai Motor Company, began construction of its announced vehicle plant in Saudi Arabia. The facility is part of the kingdom’s push to develop domestic EV manufacturing capabilities under Vision 2030, aiming to produce both electric and hybrid vehicles for the local and regional markets.
   

Middle East & Africa passenger electric vehicle market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Bn) and Volume (Units) from 2022 to 2035, for the following segments:

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Market By Vehicle

• Hatchback
• Sedan
• SUV
• Others

Market By Drive

• Front-wheel drive
• Rear-wheel drive
• All-wheel drive 

Market By Propulsion 

• Battery Electric Vehicle (BEV)
• Fuel Cell Electric Vehicle (FCEV)
• Plug-in Hybrid Electric Vehicle (PHEV)

Market By Application

• Personal
• Commercial

Market By Price

• Entry
• Mid-Range
• Luxury
   

The above information is provided for the following countries:

• United Arab Emirates (UAE)
• Saudi Arabia
• South Africa
• Qatar
• Egypt
• Ethiopia
• Morocco
• Kenya
• Nigeria
• Oman