MENA Vehicle Market in 2025 remains resilient. Full-year sales grew by 4.7%, with Israel staying at the top but Morocco impresses with the largest gains among top 5 countries. EV sales increased by 9.5%, with BYD and Tesla struggling while Geely secures more share.
Economic Environment
2025 forecasts point to generally robust growth across MENAP and the CCA, with MENAP expected to strengthen gradually and CCA growth slowing to a more sustainable pace. In MENAP, oil exporters are benefiting from higher oil production as OPEC+ cuts are unwound more quickly, while oil importers are supported by low energy prices, strong remittances, and buoyant tourism. In the CCA, growth has continued to outperform expectations, driven by solid domestic demand, credit expansion, and hydrocarbon exports. Financial conditions remain supportive despite relatively tight monetary policy, as sovereign spreads have narrowed, exchange rates have depreciated, and several countries have maintained access to international markets. Inflation has followed different paths across the two regions, easing in most MENAP economies due to lower food and energy prices but rising in many CCA countries because of strong demand and imported price pressures.
Inflation is also projected to decline further in most countries as energy prices moderate and fiscal policy tightens through stronger revenue mobilization and more rationalized spending, including subsidy reforms. At the same time, downside risks remain significant, especially from weaker global demand, tighter financial conditions, and the possibility of higher borrowing costs if inflation or fiscal concerns persist in advanced economies. Both regions also remain exposed to renewed geopolitical tensions and increasingly severe climate shocks, which could disrupt activity and undermine stability.
Automotive Industry Trend And Outlook
Proving resilient despite geopolitical risk, the MENA region reflects a shifting consumer base with new omnichannel buying and more direct-to-consumer OEM models.
After starting the year off strong, vehicle sales in the MENA region slowed down. Overall, in 2025, 2,91 million units were sold, with a 4.7% year-on-year change in volume.
Saudi Arabia was the leader, growing 4.7% and with an impressive 29.4% share of the total. Israel followed in 2nd, up 7.7% and with a 20.1% share. UAE closed the podium with a 12.1% share (+5.4%).
Looking at best selling models, the Toyota Hilux remained the most succesful one, growing 10.8% and with a 3.4% share. The Toyota Land Cruiser -up 5 spots- ranked 2nd, up by 13.7%, while the Hyundai Accent -up 3 spots- closed the podium (+11.5%).
EV Market Trend And Outlook
On the EV side, MENA remains a two-speed market. Adoption is strongest where policy and pricing support it, and much slower where charging and economics are weaker.
Rather than depending on pure EV penetration, expansion in the middle east will hinge on the degree of infrastructurization, with charing remaining the key bottleneck and investment priority. North Africa instead is becoming MENA’s EV industrial base, with Morocco being at the forefront of localizing battery materials production.
Overall, Israel was still the leader, with a 58.6% share and growing 1.5%. UAE followed in 2nd, up by 26.4% and with a 14% share, while Saudi Arabia closed the podium with 11.9% (+0.8%).
Morocco followed with the largest gains (+183.5%) while Jordan ranked 5th (-27.2%).
Tables with sales figures
In the tables below we report sales for the top 10 countries.
