Middle East and Africa E-SUV Market Size Analysis Report - Market Share, Forecast Trends and Outlook (2025-2034)

The Middle East and Africa E-SUV market reached around USD 2.25 Billion in 2024. The market is projected to grow at a CAGR of 19.60% between 2025 and 2034 to reach nearly USD 13.47 Billion by 2034.

Middle East and Africa E-SUV Market Growth

It is expected that by the year 2030, electric vehicles will account for over 15% of the market share in the UAE, translating to approximately 58,000 units of new passenger cars and light commercial vehicles sold. Furthermore, by 2035, this market share is anticipated to rise to 25%, which corresponds to around 110,500 vehicles. In addition, South Africa is investigating the potential for local electric vehicle production, with the first fully manufactured electric vehicle in the nation expected to be completed by 2026. The National Association of Automobile Manufacturers of South Africa (Naamsa) forecasts the introduction of at least eight new EV models in the country by the conclusion of 2024.

The United Arab Emirates has recognised the electrification of mobility (eMobility) as a key policy focus and is currently seven years into an ambitious initiative aimed at decarbonising its infrastructure and energy production. As part of the Energy Strategy 2050, the nation is pursuing a blend of renewable and nuclear energy sources to attain carbon neutrality by 2050. The integration of electric vehicles is a vital component of this shift towards a low-carbon economy. To date, the UAE has transitioned 20% of its federal government agency vehicles to electric powertrains and has established an initial goal of converting at least 30% of public sector vehicles and 10% of all vehicles on the road to electric (EV or hybrid) by the year 2030.

Key Trends and Developments

Rapid urbanisation in the region, rising environmental concerns, expansion of the charging infrastructure, and favourable government initiatives are the major trends impacting the Middle East and Africa E-SUV market expansion

November 2022

Saudi Arabia introduced its inaugural electric vehicle brand known as Ceer. Ceer will engage in the design, manufacturing, and sale of a diverse array of vehicles, including sedans and sports utility vehicles, targeting consumers in Saudi Arabia as well as the broader Middle East and North Africa region.

October 2023

The Public Investment Fund (PIF) and Hyundai Motor Company entered into a joint venture agreement to create a new automotive manufacturing facility in Saudi Arabia. The total investment for this manufacturing plant is projected to surpass $500 million, with plans to produce both internal combustion engines and electric vehicles.

May 2024

Enviro Automotive, located in Pretoria, is set to introduce an electric vehicle in South Africa, priced under R400,000, during the final quarter of 2024. The vehicle, known as the Dayun Yuehu, originates from China and is a compact four-seater SUV equipped with a 31.7kWh ternary lithium battery.

June 2024

Saudi Arabian Ceer successfully finalised a $2 billion agreement with Hyundai Transys, a provider of autonomous electric vehicle drive systems. Additionally, the country has initiated its largest renewable energy exploration project, which encompasses the installation of 1,200 measurement stations nationwide.

Rising Urbanisation in the Region

The swift urban development in the Middle East and Africa is driving heightened demand for contemporary and efficient vehicles. Electric SUVs, characterised by their cutting-edge technology and reduced emissions, are well-suited to meet the increasing urban requirements for sustainable and space-efficient transportation options.

Rising Environmental Concerns

Growing awareness of environmental issues related to climate change and air pollution is fuelling interest in electric SUVs. Consumers are progressively looking for sustainable alternatives to conventional internal combustion engine vehicles in order to minimise their carbon emissions.

Expansion of Charging Infrastructure

The expansion of the electric vehicle charging infrastructure significantly increases the ease of owning an E-SUV. The proliferation of charging stations in both urban and rural locations alleviates concerns regarding range, thereby promoting greater adoption of E-SUVs.

Favourable Government Initiatives

Numerous governments within the region provide incentives, including tax reductions and subsidies, to promote electric vehicles. Government initiatives such as Saudi Vision 2030 lower the initial expenses associated with E-SUVs and foster broader acceptance among both consumers and businesses.

Middle East and Africa E-SUV Market Trends

The expansion of electric vehicle charging infrastructure represents a significant trend in the Middle East and Africa market for E-SUV. Both governmental bodies and private enterprises are making substantial investments in the deployment of fast chargers and the establishment of extensive charging stations. This initiative effectively mitigates range anxiety and facilitates the increasing adoption of electric SUVs by enhancing accessibility and convenience for consumers.

There is a marked increase in local production and strategic collaborations between international electric SUV manufacturers and regional firms. This movement is motivated by the desire to lower costs, customise vehicles for local environments, and take advantage of available incentives, resulting in more affordable and specifically designed electric SUV options for the markets in the Middle East and Africa.

Middle East and Africa E-SUV Industry Segmentation

The report titled “Middle East and Africa E-SUV Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Mid-Size
• Full Size
• Compact

Market Breakup by Propulsion

• Battery Electric Vehicles (BEVs)
• Plug-In Hybrid Electric Vehicles (PHEVs)

Market Breakup by Drive Type

• FWD
• RWD
• AWD

Market Breakup by Country

• Saudi Arabia
• United Arab Emirates
• Nigeria
• South Africa
• Others

Middle East and Africa E-SUV Market Share

Based on country, the market is segmented into Saudi Arabia, the United Arab Emirates, South Africa, and Nigeria. South Africa is projected to grow at a CAGR of 20.2% during the forecast period of 2025-2034 amid the expansion of charging infrastructure and the introduction of favourable government initiatives aimed at boosting EV adoption.

Leading Companies in the Middle East and Africa E-SUV Market

Major players are focusing on the adoption of advanced technologies to gain a competitive edge in the market.

Tesla Inc.

Tesla Inc. was established in 2003 and is headquartered in Texas, the United States. The company is dedicated to expediting the global shift towards sustainable energy through the production of electric vehicles, solar panels, and comprehensive renewable energy solutions.

BMW AG

Established in 1916, BMW AG is based in Munich, Germany. The BMW Group stands as the foremost manufacturer of luxury automobiles and motorcycles globally, in addition to offering high-end financial and mobility services.

Volkswagen AG

Volkswagen AG was established in 1937 and is headquartered in Germany. The Volkswagen Group, located in Wolfsburg, stands as one of the foremost manufacturers of automobiles and commercial vehicles globally, as well as being one of the largest car manufacturers in Europe.

Mercedes-Benz Group AG

Mercedes-Benz Group AG, with its history dating back to 1885, is based in Stuttgart, Germany. The company is engaged in the development, production, and distribution of passenger vehicles, two-seater automobiles, and related accessories. Additionally, it provides a range of services, including financing, leasing, vehicle rentals, insurance brokerage as well as innovative mobility services, among others.

Other major players in the market are BYD Co. Ltd., SAIC Motor Corp. Ltd, AB Volvo, Toyota Motor Corp., Nissan Motor Co. Ltd., and Hyundai Motor Co., among others.