Ecosystem, not vehicle technology is now decisive in electric vehicle (EV) adoption, and is responsible for sharp differences between markets. This is the key finding of Arthur D. Little (ADL)’s 2026 Global Electric Mobility Readiness Index (GEMRIX), which shows where ecosystems are ready and where structural gaps hold EVs back. In the Kingdom of Saudi Arabia, the report highlights the Kingdom’s significant potential to develop its EV ecosystem as infrastructure investment and industrial ambitions continue to accelerate.
China and Norway have both passed the point where EVs have achieved parity with internal combustion engine (ICE) vehicles.

The most comprehensive study of its kind, the third edition of GEMRIX assesses 31 markets across five dimensions: macro factors, EV market/competition, customer readiness, public charging infrastructure, total cost of ownership and regulation. A score of 100 indicates broad market-readiness parity between EVs and ICE vehicles.

The study highlights three global conclusions:
1. A small group has pulled ahead. China (106) and Norway (103) are the only markets above 100; Singapore (96) and the Netherlands (90) follow closely. Sustained adoption comes from aligned market conditions, not one silver bullet.
2. The transition is now multi-speed and multi-pathway. Growth has picked up in Europe, while Türkiye, Thailand, Vietnam, Indonesia and Brazil are gaining momentum through different combinations of affordability, infrastructure, industrial policy and local champions. Battery EVs will not scale at the same pace everywhere, and Plug-in Hybrid or Range extended EVs remain a bridge in several markets.
3. Competitiveness is shifting beyond the vehicle. China sets the benchmark by combining vehicle technology, manufacturing scale, battery/component supply chains, software-defined vehicle capabilities, charging rollout, energy economics, incentives and regulation. Chinese OEM expansion in emerging markets shows how ecosystem fit, affordability and speed can outweigh incumbent brand strength.

KSA remains one of the largest automotive markets in the GCC, with approximately 857,000 new vehicle registrations in 2025, up 3.6% year on year, while EV penetration remained below 2%. At the same time, the Kingdom is building the foundations of an EV ecosystem through industrial investment and infrastructure development. Its strategy includes Ceer, investment in Lucid and a target of up to 300,000 units of annual EV production capacity by 2030, while charging infrastructure reached approximately 1,200 points by the end of 2025.

Alexander Krug, Partner, Automotive & Manufacturing Goods Practice, Arthur D. Little, comments: “The world will not become 100% electric at one speed or through one pathway; winners will read each ecosystem and act before the market opportunity is obvious.”
Joseph Salem, Partner and Middle East lead for the Travel, Transportation, and Hospitality practice, Arthur D. Little, comments:“KSA’s inclusion in GEMRIX 2026 reflects the Kingdom’s increasingly deliberate approach to building an EV ecosystem. While adoption remains at an early stage, investment is extending beyond vehicle sales into industrial capacity, local manufacturing and charging infrastructure. The combination of the Ceer program, investment in Lucid and the ambition for up to 300,000 units of annual EV production capacity demonstrates the scale of the Kingdom’s industrial agenda.”

Dr. Philipp Seidel, Principal, Automotive & Manufacturing Goods Practice, Arthur D. Little, adds: “The EV race is no longer just about vehicle technology. Chinese success shows what happens when product, manufacturing and supply chains, infrastructure, energy and policy are orchestrated as one system. Thanks to this, Chinese OEMs now increasingly dominate the global market through targeted export of not only vehicles but of full EV ecosystems.”