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What is the future market Potential of the Last Mile LEVs in KSA?

Favorable government policies and support in terms of subsidies and better availability of charging infrastructure to drive the LEV sales in KSA Market.

EVs are slowly gaining traction with less than 0.5% of vehicles deployed as PHEVs in Saudi Arabia. Efforts to create a market for EVs are consistent with the Saudi Crown Prince Muhammed bin Salman’s Vision 2030 plan, which aims to reduce the country’s dependence on oil, diversify the economy, and implement a range of social reforms. The EV infrastructure in Saudi Arabia is still lagging behind as the government is yet to install charging stations in public areas. Here is an overview of the future market potential of last-mile LEVs in KSA and also how new types of vehicles like LEVs are going to help e-commerce retailers to overcome the last-mile problem.

1. The advent of e-commerce, food and grocery deliveries is leading to a rapid increase in demand for last-mile deliveries

2.  However, most e-commerce retailers in KSA struggle with last-mile delivery as delays, reduced success rate & difficulty cash-on-delivery (COD) handling

3. E-com Retailers need to come up with solutions to solve the LMD problem in an efficient way to meet the growing customer demands

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 4.  Companies such as Saee and Aramex aiming to Disrupt LMD in KSA to resolve the issues

5.  New types of vehicles like LEVs and new logistic structures are emerging to address the new paradigm in E-Commerce Industry

6.  LEVs adoption is expected to reach 10% in the Last Mile Delivery Fleet by 2027

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Light Electric Vehicle industry in KSA

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