Automotive Industry in the region

Automotive Industry in Saudi Arabia

Electric vehicles in the automotive industry are still uncommon in Saudi Arabia, as at the present, the total vehicle penetration in Saudi Arabia is less than 1%. As part of the ambitious 2030 reform project, the sustainable, electric vehicle industry is forming a basis for both public transport and construction, in a target rise of up to 30% in shares of electric vehicles.

Ground braking partnerships between global cooperations and Saudi companies only broadens the potential for the automotive industry in the region. Partnerships between F1 and SABIC, Mercedes and Juffali construct massive opportunities for an introduction of over 500,000 new jobs, striving to reach the 2030 vision. These partnerships offer to align the country with more sustainable strategies and contribute significantly to the 2030 vision, and advance large scale mega cities projects such as NEOM.

Electric vehicle production

A large contribution to the nation’s green initiative

Arguably one of the most significant automotive industrial projects is CEER Motor Company, by Saudi Arabia’s crown prince Prince Mohammed bin Salman bin Abdulaziz, with plans to stand as a pillar for electric vehicle production. CEER is projected to directly contribute to US$8 billion to Saudi Arabia’s GDP by 2034. CEER also acts as the regions first “made in Saudi” cars opening a global opportunity for the kingdom and offers a large contribution to the nation’s Saudi green initiative to achieve net zero by 2060.

More manufacturers are expected to be setting up facilities such as the California-based electric vehicle manufacturer Lucid Motors. In May 2022 Lucid motors awarded a $640 million contract to build an electric vehicle plant to local construction company Al Bawani. With large investments being made into Saudi Arabia forecasts expect the number of electric vehicles to range between 1 million to 2 million.

Juffali & MercedesBenz Partnership, Formula F1

SABIC Long-term partnership, formular E

Jeddah Corniche Curcuit, Track of Dreams

Global leaders in the chemical industry, SABIC, are collaborating with formula E, allowing them to achieve their sustainability ambitions entering in a major long-term deal. F1 is also advancing further with the Jeddah Corniche Circuit in line the with the 2030 vision being foreseen as a legacy project that will restore the variety of Jeddah. Juffali commercial vehicles is playing a huge role in the development in one of the worlds most ambitious mega cities. Where Mercedes and Juffali vehicles are working diligently on the project that will reform the world economy, the vehicles adding new dimensions of strength and efficiency.