Saudi Arabia's New Used Car Policy

Saudi Arabia's New Used Car "Entry Threshold": Seven Types of Vehicles Will Be Permanently Denied Entry, and Individually Imported Vehicles Cannot Be More Than 5 Years Old

The Saudi government recently announced a new vehicle entry regulation for 2026: after the policy is fully implemented, seven types of used cars will be prohibited from entering Saudi Arabia...

The Saudi government recently announced a new vehicle entry regulation for 2026: after the policy is fully implemented, seven types of used cars will be prohibited from entering Saudi Arabia. Local media, citing official statements, stated that this move aims to "raise road safety standards" and cooperate with the national fleet renewal plan, preparing for implementation in 2026. Preliminary signs of implementation are already emerging.

According to the disclosed information, the used cars on the "blacklist" are mainly concentrated in high-risk, high-wear, and hard-to-trace potential hazards, including vehicles previously used for security/law enforcement purposes and taxis; vehicles involved in major accidents that have affected the body structure or critical systems; and vehicles that have been flooded or submerged due to electrical system and structural hazards. In addition, Saudi Arabia will ban the import of vehicles with modified steering wheel positions and issue a "red card" to vehicles using fuel types that do not meet local standards.

Besides restrictions on vehicle origin and condition, the new regulations also add strict conditions for private imports of used cars: the vehicle age must not exceed 5 years, and an energy efficiency certificate and a technical inspection report issued by an accredited institution are required to prove that the vehicle meets safety standards and does not belong to the aforementioned prohibited uses and categories. The report points out that these measures are part of a "systematic improvement of vehicle safety and quality," aiming to reduce the risk of accidents and the influx of vehicles with hidden defects into the market.

From the perspective of Chinese automotive exporters, this round of tightening will have the greatest impact on the "low-priced used car" channel, especially the export model relying on gray market sources such as retired taxis, accident-repaired vehicles, and flood-damaged vehicles, which will be essentially blocked. Conversely, for the export of nearly new used cars and new cars through legitimate channels, the Saudi market may see some structural opportunities due to the contraction in used car supply. We recommend that companies conducting used car business in Saudi Arabia do three things as soon as possible: First, re-evaluate the sources of vehicles available for export and strictly exclude vehicles that have been in accidents, flooded, or have sensitive intended uses; second, bring vehicle age control and documentation compliance (energy efficiency and testing) to the ordering and pricing stages to avoid "return/confiscation" after arrival at the port; third, pay special attention to issues such as steering wheel repositioning and fuel type compliance—in a high-standard market like Saudi Arabia, illegal modifications are often more fatal than price.