Saudi Arabia Luxury Car Market

Market Overview:

Saudi Arabia luxury car market size reached USD 4.2 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 6.8 Billion by 2033, exhibiting a growth rate (CAGR) of 5.04% during 2025-2033. The growing demand for the advanced technology, numerous safety enhancements, and the rising popularity of luxurious amenities that these vehicles offer are some of the key factors driving the market growth.

Luxury cars are high-end, technologically sophisticated vehicles that offer top-tier interiors, enhanced performance, and numerous safety features. These vehicles provide superior quality, heightened comfort, and innovative services, albeit at a premium price compared to economy and mid-sized cars. Typically, luxury cars come equipped with luxurious features such as leather seats, advanced navigation systems, cameras, and upgraded suspension and engines. In addition to these standard features, luxury cars often boast exclusive elements like an anti-kidnapping heartbeat monitor, a top-speed key, a jump seat, trunk hinges, a starlight headliner, a unique gear selector, pop-up tweeters, and air vent slats, among others. These extra features contribute to an unparalleled driving experience, further justifying the higher cost associated with luxury vehicles. The demand for luxury cars reflects a consumer preference for a premium driving experience, where cutting-edge features and exceptional craftsmanship converge to create a driving experience that goes beyond the ordinary.

Saudi Arabia Luxury Car Market Trends:

Growing road infrastructure development

The ongoing road infrastructure development is enhancing driving conditions and connectivity in Saudi Arabia. In July 2025, the deputy governor of the Riyadh region, Prince Mohammed bin Abdulrahman bin Abdulaziz, inaugurated six road projects in Riyadh, which spanned 112 Kilometers and had a budget of 380 Million Riyals. It sought to enhance the living standards in Saudi cities and boost the efficiency of the nation’s roads and infrastructure. Expansive highways, urban road upgrades, and smart transportation networks under Vision 2030 are creating an ideal environment for high-performance and premium vehicles. Smooth and well-maintained roads allow luxury cars to deliver their full potential in speed, comfort, and safety. Improved infrastructure also supports long-distance travel between major cities, increasing the appeal of luxury cars for both daily commutes and leisure driving. Enhanced accessibility to remote tourist destinations and newly developed urban areas is further driving the demand. As the road network continues to expand, more people are encouraged to wager on high-end vehicles, knowing they can enjoy superior performance and comfort without compromising on convenience and reliability.

Increasing impact of social media

Rising influence of social media is shaping user aspirations and boosting brand visibility. Digital platforms allow influencers, celebrities, and automotive enthusiasts to showcase luxury cars in visually appealing ways, inspiring followers to seek similar lifestyles. High-quality content featuring luxury models, test drives, and exclusive events builds desire among younger, tech-savvy users. Luxury car brands are also leveraging targeted social media campaigns to highlight design, performance, and status appeal, creating stronger brand engagement. Social media trends often spark interest in limited-edition models and customization options, motivating people to make premium purchases. As more individuals are employing social media channels and digital influence is growing, luxury car ownership is increasingly seen as a symbol of prestige, fueling the market expansion in Saudi Arabia’s socially connected environment. As per industry reports, in 2024, 35.10 Million people were active on social media in KSA.

Rising tourism activities

Increasing tourism activities are catalyzing the demand for premium transportation experiences among visitors. The Saudi Tourism Minister revealed that Saudi Arabia welcomed 30 Million international visitors in 2024, setting a new record. As the Kingdom is expanding its tourism sector under Vision 2030, destinations like NEOM, AlUla, and the Red Sea attract affluent international and domestic travelers. Luxury car rentals, chauffeur-driven services, and premium airport transfers are in high demand, offering tourists comfort, style, and exclusivity. Hotels, resorts, and tour operators are partnering with luxury car brands to provide elite mobility options, enhancing overall travel experiences. Additionally, international events and cultural festivals aid in drawing wealthy attendees who seek high-end vehicles during their stay. This tourism-driven demand is not only benefiting rental services but also enhancing brand visibility, leading to increased luxury car sales in the local market.

Key Growth Drivers of Saudi Arabia Luxury Car Market:

Increasing popularity of electric and hybrid luxury cars

The growing popularity of electric and hybrid luxury cars is offering a favorable market outlook in Saudi Arabia. Government incentives, expanding electric vehicle (EV) charging infrastructure, and rising environmental awareness are encouraging the adoption of green technologies. Premium brands are introducing advanced electric and hybrid models with cutting-edge features, extended driving ranges, and superior comfort, appealing to both eco-conscious buyers and tech enthusiasts. Luxury EVs offer quiet operation, instant torque, and futuristic designs, aligning with modern user preferences. The Kingdom’s commitment to reducing carbon emissions under Vision 2030 is further supporting this shift. As more charging stations are installed in urban centers, highways, and luxury properties, electric and hybrid luxury cars are becoming a desirable choice, driving innovations and sales growth in the sector.

Rising motorsport and car enthusiast culture

The growing motorsport and car enthusiast culture is fueling passion for performance, exclusivity, and automotive lifestyle. High-profile motorsport events like Formula 1 and the Saudi Toyota Championship inspire interest in high-performance vehicles. Car clubs, auto shows, and luxury car meets bring enthusiasts together, creating a vibrant community that values premium craftsmanship and engineering. Many luxury brands sponsor these events, offering test drives, showcases, and limited-edition releases, which strengthen brand loyalty. Enthusiasts are investing in high-end cars to participate in track days and showcase their collections, further boosting sales. This cultural shift towards celebrating automotive excellence is turning luxury cars into both status symbols and personal passions, making the market more dynamic and aspirational across the Kingdom.

Strong after-sales service and maintenance support

Strong after-sales service and maintenance support are propelling the market growth by enhancing customer confidence and ownership satisfaction. Premium buyers prioritize reliable service networks, genuine parts availability, and skilled technicians to maintain their vehicles’ performance and value. Luxury car brands in Saudi Arabia are expanding service centers, offering extended warranties, and providing concierge-style maintenance packages to ensure a seamless ownership experience. Quick response times, personalized service, and exclusive customer care programs strengthen brand loyalty and encourage repeat purchases. The assurance of top-tier maintenance also attracts first-time buyers who value long-term reliability. By combining high-quality vehicles with exceptional after-sales support, luxury car manufacturers and dealerships are creating a trusted ecosystem that supports sustained market growth in the Kingdom.

Saudi Arabia Luxury Car Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on vehicle type, fuel type, and price range.

Vehicle Type Insights:

• Hatchback
• Sedan
• Sports Utility Vehicle

The report has provided a detailed breakup and analysis of the market based on the vehicle type. This includes hatchback, sedan, and sports utility vehicle.

Fuel Type Insights:

• Gasoline
• Diesel
• Electric

A detailed breakup and analysis of the market based on the fuel type have also been provided in the report. This includes gasoline, diesel, and electric.

Price Range Insights:

• Entry-Level
• Mid-Level
• High-End
• Ultra

The report has provided a detailed breakup and analysis of the market based on the price range. This includes entry-level, mid-level, high-end, and ultra.

Regional Insights:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

The report has also provided a comprehensive analysis of all the major regional markets, which include Northern and Central Region, Western Region, Eastern Region, and Southern Region.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Saudi Arabia Luxury Car Market News:

• April 2025: Tesla, a luxury vehicle brand focused on technology, opened its inaugural showroom and service center in Riyadh, Saudi Arabia. The facility would provide models, such as Model 3 and Model Y, with pop-up shops launching in Riyadh, Jeddah, and Dammam.
• January 2025: Wallan Trading Company introduced the 2025 Lotus Emeya, the inaugural electric hyper-GT in Riyadh. The Lotus Emeya provided top-tier luxury, exceptional comfort, and flawless connectivity. It was fitted with several cutting-edge technologies aimed at building customer trust and ensuring safety while providing capabilities for future autonomous driving.
• November 2024: Porsche Saudi Arabia and SAMACO Motors unveiled the brand-new luxury car, Panamera. The event for the launch took place in Riyadh and Jeddah, showcasing Porsche's dedication to enhancing performance, luxury, and efficiency. The updated Panamera presented a range of cutting-edge digital technologies, opulent design features, improved suspension setups, and more powerful e-hybrid engines.

Saudi Arabia Luxury Car Market Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Saudi Arabia luxury car market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia luxury car market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Saudi Arabia luxury car industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.