Car imports from China to the GCC rose sharply from 46,205 units in 2018 to 422,185 in 2023, with market share climbing from 3.5% to a peak of 21.4% in 2022. Notably, the region saw a 91% surge in imports between 2018 and 2019, and again between 2021 and 2022, highlighting two key inflection points. Saudi Arabia and the UAE drove this surge, together accounting for over 80% of Chinese car imports to the region. It is estimated that ∼80% of these exports were from Chinese brands, underscoring China’s growing dominance in the automotive industry.

A key driver behind this surge was Saudi Arabia’s 2018 decision to lift the ban on women driving, a move that unlocked an entirely new consumer segment, who currently account for 30% of car sales in the country. Moreover, in 2022, imports of Chinese cars surged due to rising demand and expansion efforts driven by strategic local partnerships, competitive pricing, and eye-catching design. Brands like Chery, MG, Changan, and GAC introduced affordable, tech-loaded models suited to new drivers and aligned with regional SUV and sedan preferences. Most notably, Jetour’s “T2” and “Dashing” SUV models, whose popularity propelled the brand to become the second-largest in the Saudi automotive sector in 2023. Furthermore, Chinese automakers partnered with top local distributors like Al-Futtaim and Abdul Latif Jameel, established partnerships with local banks to financing and executed fleet deals with rental companies Yelo and PEAX which boosted visibility.

Despite this momentum, challenges remain. GCC consumers still raise concerns about resale value, brand reliability, and after-sales service of Chinese car brands. To solidify their position and build long-term success, Chinese automakers will likely need to strategically focus on developing distinct brand identities, achieving a balance between rapid innovation and established models, and significantly enhancing post-purchase experiences and after-sales support to foster greater consumer trust and loyalty.