https://arab.news/mxct3
RIYADH: Saudi Arabia’s car rental and business-to-business sectors are expected to drive electric vehicle adoption in the coming two years, according to an industry leader.
Speaking during a panel discussion at the EV Auto Show in Riyadh, Hashim Al-Fatayerji, regional executive director at Sixt, forecast a rise in EV dealerships across the Kingdom.
“In 2025 and 2026, we will see more adoption of EVs across the rental car and B2B sectors,” he said.
Saudi Arabia aims to convert 30 percent of Riyadh’s vehicles to electric by 2030, part of a broader strategy to cut emissions in the capital by 50 percent and achieve carbon neutrality by 2060.
Al-Fatayerji anticipates the opening of additional dealerships – including American and European brands – and increased local production of EVs by the end of 2026.
“This will be a game changer for the industry because it will change the dynamics of purchasing power in the market and where we are buying cars from,” he added.
Al-Fatayerji also noted that Sixt is working closely with partners and suppliers to ensure operational efficiency and profitability.
Nicolas Verneuil, managing director at Petromin Stellantis, emphasized the need for further progress in the EV sector.
“More needs to be done, of course, and until we reach the right level of capillarity, people will wonder, ‘Can I get quite the same driving experience with an EV as I do with my combustion engine?’” he said.
Verneuil also highlighted the efforts of the government, the Public Investment Fund, and private companies in accelerating infrastructure development.
Lisa Brigmann, president and CEO of AdvantEdge Engineering Group, discussed the role of automotive companies and rental businesses in EV adoption.
“I think that it would be really helpful for big automotive companies and even car rental companies to start helping customers envision how they can accept EVs into their daily lives,” she said.
Brigmann also pointed out that while material costs for EVs remain high, the benefits of lower CO2 emissions are a significant driver. “When they rent or own a car, they are actually part of the solution to reducing emissions,” she added.
In a separate panel, James Luxbacher, managing director at Sixt, addressed the pricing challenges of EVs.
Luxbacher noted that the rapid decline in vehicle pricing makes it challenging for owners who plan to resell their vehicles after a certain period. “We need some more stability, and I think most of us are learning right now. It will get more stable in the future,” he said.
The Sixt managing director also commented on the reliability of EVs, saying: “But again, it takes the infrastructure too if you want to go on longer trips with the truck. Particularly in last-mile delivery, we’ll see a big uptick in it.”
The EV Auto Show, held at the Riyadh International Convention and Exhibition Center, aligns with Saudi Arabia’s Vision 2030, underscoring its commitment to EVs and sustainable technology.
The event brings together automotive manufacturers, charging solution providers, policymakers, and consumers to explore the future of mobility. Attendees can engage with a range of EVs, charging solutions, and green technologies through interactive seminars and panel discussions.