Automotive Industry in the Region

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

Groundbreaking partnerships between global corporations and Saudi companies only broaden the potential for the automative industry in the region. Partnerships between F1 and SABIC, Mercedes and Juffali offer to align the country with more sustainable strategies, create opportunities for the introduction of over 500,000 new jobs, and contribute significantly to Vision 2030 and the advancement of large-scale mega city 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, founded 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 USD 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 offering a large contribution to the nation’s Saudi Green Initiative (SGI) to achieve net zero emissions by 2060.

More manufacturers are expected to set up facilities, with one example being the California-based electric vehicle manufacturer Lucid Motors. In May 2022, Lucid Motors awarded local construction company, Al Bawani, a contract worth USD 640 million to build an electric vehicle plant. With large investments being made into Saudi Arabia, forecasts estimate the number of electric vehicles will range between 1 and 2 million in 2030.

CEER Cars Saudi Arabia
ID VLC 1-IG15 / CEER

Global leaders in the chemical industry, SABIC, are collaborating with Formula E in a major long-term deal which will allow for the integration of their sustainable solutions. F1 is also continuing work on Qiddiya Speed Park, a new racetrack and mega-city development project under Vision 2030. Until the completion of the Speed Park, currently scheduled for 2027, the Saudi Arabian Grand Prix will continue to be hosted at the Jeddah Corniche Circuit.

Mercedes and Juffali Commercial Vehicles are playing a huge role in the development in NEOM, one of the world's most ambitious mega cities.

German-Saudi Business Magazine

Edition: December 2022

Given the current trend of automotive innovation in the Kingdom – culminated in the launch of the e-car brand Ceer last month – the GSBM issue December 2022 sheds light on the sector’s supply chains and implementation on the ground. Ceer is estimated to create up to 30,000 jobs and to contribute $8bn to Saudi economy by 2034.

Learn more about the automotive sector