In recent years, the scale of China's automotive parts exports to Saudi has continued to expand, making China the leading source of imports for Saudi in this sector. From January to October 2024, the export value reached 31.296 billion RMB, with the annual figure projected to exceed 37 billion RMB. This accounts for 23.9% of Saudi's import share in this field, significantly surpassing the shares of the United States, Japan, and other countries.
This growth is driven by robust market demand in Saudi: the country's vehicle parc exceeds 20 million units, with 80% of vehicles being over five years old. High temperatures and sandy conditions accelerate the wear of vulnerable parts, generating an annual aftermarket demand exceeding $20 billion. For instance, China's tire exports to Saudi alone reached 398,000 tons in 2024. Concurrently, Saudi is advancing its "Vision 2030," which includes a plan for electric vehicles to constitute 30% of the market, spurring surging demand for new energy components like batteries and charging piles. Furthermore, as a logistics hub in the Middle East, Saudi's re-export trade of auto parts is growing at an annual rate of 45%.
In terms of competition, Chinese parts dominate the mid-to-low-end market with their cost-performance advantage, supplying 60% of brake pads and filters. However, the high-end market is still led by German and Japanese brands. Additionally, Saudi's requirement for a 40% localisation rate of auto parts by 2030 under its "Vision 2030" is expected to substitute some import demand. On the policy front, Saudi will reduce tariffs on electric vehicles and related parts to 5% in 2025, but implements strict SASO certification standards. Conversely, direct China-Saudi shipping routes shorten transport cycles, and the increasing coverage of the CIPS system provides facilitation for exports.
Overall, China's automotive parts exports to Saudi show strong short-term growth momentum. In the long term, focusing on the new energy sector, coupled with technological upgrading and localised production, will be crucial to navigate market transformations.
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