Riyadh: Saudi Arabia is laying a solid foundation to transform its automotive industry into a global leader. Backed by the ambitious Vision 2030 and supported by strategic investments, innovative partnerships, and localization efforts, the Kingdom is creating an enabling environment for sustainable growth in the automotive sector. With the introduction of electric vehicles (EVs), local manufacturing plants, and talent development programs, Saudi Arabia is rapidly positioning itself as a key player in the global automotive value chain.
According to Saudi Press Agency, through the localization of major Original Equipment Manufacturers (OEMs), the establishment of nationwide training academies, and a focus on cutting-edge technologies like e-mobility and autonomous driving, Saudi Arabia is building a strong and resilient foundation for this industry. These efforts have already resulted in major milestones, and the Kingdom is on track to achieve its vision of becoming a regional hub for the automotive sector.
Saudi Arabia has made significant progress in recent years, achieving major milestones that highlight its commitment to building a competitive and sustainable automotive ecosystem. The Kingdom has successfully localized operations for more than four leading OEMs and seven key suppliers, reducing reliance on imports and strengthening the local supply chain.
Saudi Arabia introduced Ceer Motors, the first national automotive brand, through a joint venture between the Public Investment Fund (PIF) and Hon Hai Precision Industry Co. (Foxconn). Ceer is creating a portfolio of innovative EVs that will lead in e-mobility, connectivity, and autonomous driving technologies, reflecting the Kingdom’s focus on advanced and sustainable mobility.
Lucid Motors started assembly in 2023 and has established a local manufacturing plant in Saudi Arabia, marking one of the biggest US investments by Saudi Arabia’s PIF. Lucid Motors is planning to achieve peak production of up to 150,000 cars annually in the Kingdom, further solidifying Saudi Arabia’s position as a global hub for EV manufacturing.
The Ministry of Industry and Mineral Resources, in collaboration with the PIF, has successfully attracted Hyundai Motor Company to establish a highly automated vehicle manufacturing plant in Saudi Arabia. This joint venture, with PIF holding a 70% stake and Hyundai the remaining 30%, represents a total investment exceeding $500 million. The plant is designed to produce 50,000 vehicles annually, encompassing both internal combustion engine and electric vehicles, thereby significantly enhancing local manufacturing capabilities.
The establishment of the National Automotive and Vehicles Academy (NAVA) marks a pivotal step in equipping the Saudi workforce with cutting-edge skills in EV manufacturing and advanced automotive technologies. The Ministry of Industry and Mineral Resources is actively working to strengthen supply chain resilience and reduce dependency on imports. Efforts with stakeholders are ongoing to establish a Local Suppliers Development Program aimed at upskilling and certifying local suppliers to meet international automotive standards.
A skilled workforce is critical to the success of Saudi Arabia’s automotive ambitions. Recognizing the shortage of qualified local talent, the Ministry has introduced several initiatives. Through NAVA and collaborations with the National Academy of Industry, Saudi Arabia is providing advanced training in EV manufacturing and automotive technologies. Collaborations with the Custodian of the Two Holy Mosques Scholarship Program and leading global universities are also underway, investing in educating local talent in automotive-related specializations.
The automotive industry is a significant contributor to national economies worldwide, and Saudi Arabia is leveraging this industry to drive economic growth and job creation. The multiplier effect of the automotive sector underscores its potential to boost the Kingdom’s GDP and create thousands of high-quality jobs for its citizens. The Kingdom’s automotive sector is expected to grow at a rate of 12% annually by 2030.
Saudi Arabia’s automotive ambitions go beyond production and manufacturing. The Kingdom is building a sustainable and competitive automotive ecosystem that integrates localization, innovation, and global collaboration. By focusing on long-term strategic goals, the Kingdom is shaping a future where it will not only meet domestic demand but also become a key player in global automotive markets.