Middle-East and Africa Passenger Car Market

The Middle-East and Africa passenger vehicle market value is anticipated to grow from USD 113.9 billion in 2025 to 126 billion in 2026 and expected to reach USD 191.8 billion in 2031 with a CAGR (2026-2031) of 8.76%.

Increasing vehicle ownership, expanding Chinese OEM presence, increasing automotive localization and a gradual transition toward electrified powertrains is collectively driving the Middle-East and Africa passenger vehicle market. The GCC passenger vehicle market is the growth lever owing to relatively high disposable income, urbanization and large-scale infrastructure investment. Saudi Arabia has registered an increase of passenger car sales from 460 thousand units in 2019 to 727 thousand units in 2025, United Arab Emirates has seen an increase of 199 thousand units in 2019 to 263 thousand units in 2025, while Kuwait 98 thousand units in 2019 to 128 thousand units in 2025 [Source: OICA].

MEA is following a different transition path, while the electric vehicle transition is growing significantly from a relatively modest base. With over 50% of regional EV sales in 2025, the UAE continued to be the largest market in the region, while Qatar and Saudi Arabia together accounted for nearly 45% of regional demand. The National Electric Vehicles Policy and charging infrastructure support the UAE government's ongoing goal of achieving 50% battery-powered cars on the road by 2050. Significant headroom for future EV adoption is indicated by the difference between the 2050 target and the 3.4% BEV share.

Chinese OEMs has emerged as a significant competitive force in MEA passenger car market by offering affordable models, advanced infotainment and ADAS features, competitive warranties and increasingly broad dealer networks. In South Africa, the presence of Chinese brands has increased from 8 to 15 from 2024 to 2025, resulting in an increase from 11% to 17% in MEA passenger vehicle market share, and anticipated to capture one-third of the MEA passenger car market share by the end of 2030. 

The Middle-East and Africa passenger car market study covers the new passenger vehicles across different propulsion technologies, vehicle body types, price categories, sales channels and end-user groups, with analysis across Saudi Arabia, United Arab Emirates (UAE), South Africa, Egypt, and Rest of the Middle East & Africa. The study excludes commercial vehicles, buses, trucks, two-wheelers, used vehicles, and standalone aftermarket services, vehicle parts and components, EV batteries, charging infrastructure and any other mobility services.

Internal combustion engine (ICE) accounts for 82% of Middle-East and Africa passenger car market in 2025 indicate continued dependence on conventional powertrains. Low retail fuel prices, extensive refueling networks, established repair ecosystems and high availability of gasoline-powered models continue to allow ICE segment holding largest market share. SUVs substantial installed base and replacement pipeline along with higher energy density and long-distance operating capability adds up to the market share of ICE powertrain.

Meanwhile, Hybrid electric vehicle (HEV) projected to grow at 12% CAGR during 2026-2031. HEVs hold significant advantage in markets where EV charging infrastructure remains concentrated, as customers and fleet operators increasingly seek improved fuel efficiency without the charging requirements the demand for HEV will continue to grow.

SUVs account 55% of Middle-East and Africa passenger car market share and continue to be the dominant segment across vehicle type projected to record 10.5% CAGR by 2031. The region's distinctive driving environment and consumer preference for larger, versatile vehicles, GCC’s high-speed highway travel, desert and off-road usage, and family-oriented mobility are the factors primarily drive the demand for SUVs. Increasing model availability of compact and mid-size SUVs is supporting the wider MEA passenger car market, allowing penetrating beyond premium category. Increasingly car launches across both conventional and electrified powertrains reflects OEMs priority towards SUVs development. The segment's strong value market share and CAGR are supported by the combination of increased vehicle value, wider model availability, and powertrain diversification.

Saudi Arabia passenger car market accounts 24% of the Middle-East and Africa passenger car market in 2025. Large vehicle parc, sizeable consumer base, high mobility requirements, and strong purchasing power is supporting the Saudi Arabia leading position. In 2025, there were over 11 million private automobiles registered in Saudi Arabia, creating a sizable foundation for replacement demand. Furthermore, Saudi Arabia contributes more than half of all GCC sales of cars, underlining its significance in the regional car market. Additionally, Vision 2030 prioritizes automotive-sector localization, industrial diversification, and development of domestic vehicle manufacturing. Such initiatives, combined with urbanization, infrastructure development, fleet demand, and increasing model availability position kingdom of Saudi Arabia as demand center in Middle-East and Africa.

Saudi Arabia passenger car market is projected to be the fastest growing Middle-East and Africa passenger car market at 9.8% CAGR during 2026–2031. Rising mobility demand, population growth, economic diversification, vehicle replacement requirements, and continued investment to support automobile localization is driving the Saudi Arabia at the fastest pace across Middle-East and Africa. The national strategy targets annual production capacity of 600,000 vehicles by 2035 is likely to drive the growth run over the coming years. Additionally, increasing vehicle affordability, financing penetration, fleet and rental demand, localization, and broader model availability is projected to sustain the growth momentum through 2031.

Market value is calculated using new passenger vehicle sales volume multiplied by the corresponding average selling price (ASP). ASP is estimated by vehicle type, propulsion, price segment and country to capture differences in product mix and pricing. Historical estimates are benchmarked against vehicle registrations, OEM sales disclosures, government statistics, industry associations and company filings. Forecasts incorporate expected changes in vehicle volume, powertrain mix, vehicle pricing, technology content, consumer demand and regulatory conditions.