The Saudi Arabian electric vehicle market is predicted to expand at a CAGR of 32.5% by the end of 2028. The burgeoning use of used electric vehicles in the rising logistics and passenger transportation industries is responsible for the lucrative expansion of the Saudi Arabian electric vehicle market. Government initiatives and legislation are also thought to contribute to the market growth for electric vehicles in the near future.
Additionally, Saudi Arabia has set a target to achieve net-zero carbon emissions by 2060 using a circular economy strategy consistent with the country’s development and diversification ambitions. On paper, the target that Saudi Arabia has set is pretty lucrative. The main challenge is whether or not there are measures in place to see all of it to fruition. The nation of Saudi Arabia, widely known for oil production, has revealed that it is going to join with BMW and Foxconn to introduce its own brand of EV called Ceer.
EV transition
This confirmation comes after extended periods of speculation. A lot of people underestimated the speed that the transition to electric vehicles would be, but it is evidently an unstoppable force. Saudi Arabia, as a country, has taken a bold step, so as not to be left behind. Saudi Arabia, an oil-producing nation, has also been investing a lot of money into electric vehicles. It has also made a substantial investment in Lucid Motors, a firm with hopes of establishing a production facility in the nation.Â
Through the wealth fund of Saudi Arabia, the investment was materialized. This very fund has recently disclosed the plans to introduce its own EV brand called Ceer. The nation intends to manufacture 328,000 electric vehicles every single year considering the investments made in the field. Ceer’s vehicles are going to be sold starting in 2025 and will generate up to 30,000 employment vacancies in addition to over $150 million in direct foreign investment.
EV components
By 2034, it will also contribute about 8 billion US dollars to the kingdom’s Gross Domestic Product (GDP). Over 60% of Lucid Group, which has indicated intentions to erect an electric vehicle assembly factory in a region called Jeddah to produce 150,000 automobiles a year, is owned by Saudi Arabia. In relation to Ceer, this venture program will obtain a license from BMW to develop vehicle component technologies.
Design and production will take place in Saudi Arabia. Ceer would market its electric cars to clients in Saudi Arabia and the North Africa-Middle East region. As the market for electric vehicles continues to increase in popularity, a number of EV startups are also starting to appear. To draw customers and achieve a competitive advantage, corporations frequently introduce new vehicle models and their enhanced variants with cutting-edge features. To keep ahead of the competition, they also use competitive strategies including alliances, mergers, acquisitions, and joint ventures.
