Saudi Arabia’s “Ceer,” the first domestic electric vehicle (EV) manufacturing brand, inked an agreement with South Korean counterpart “Hyundai Transys” for approximately USD 2 billion (SAR 8.2 billion).
Under the agreement, the latter, a subsidiary of the “Hyundai Motor,” will supply the former’s cars with its Advanced EV Drive Systems.
Details
James Deluca, CEO of “Ceer,” explained that not only does Hyundai Transys’ system significantly reduce vehicle size and weight, it also enhances power efficiency, streamlines the EV design process, and improves cost competitiveness.
So What
The driving system is expected to be used for 10 years across all “Ceer” vehicle models starting in 2027, including in the next generation of SUVs, sedans, and coupes.
This comes within the framework of Saudi Arabia’s target to produce 500,000 electric vehicles annually by 2030.
It also aims to increase the adoption rate of electric cars in Riyadh to 30%.
This aligns with “Vision 2030,” which seeks to diversify the kingdom’s economic resources while reducing its carbon footprint, preserving its environment, and promoting sustainable development.
Some Context
In November 2022, “Ceer” was launched as a partnership between the Public Investment Fund and China’s “Foxconn.”
This collaboration includes German automotive giant “BMW,” which will provide “Ceer” with licenses for electric vehicle component technology for use in its vehicle development.
Meanwhile, “Foxconn” will develop the electric system for the cars, which will be designed and manufactured entirely within the Kingdom at Ceer’s factory in the Industrial Valley of King Abdullah Economic City (KAEC).
The company’s establishment is in line with the strategy of the Saudi sovereign fund, aiming to empower promising sectors in the country, including the automotive industry.
Now What
Ceer aims to attract direct foreign investments to support the national economy, totaling USD 150 million.
Its contribution to the Gross Domestic Product is expected to reach SAR 30 billion (USD 8 billion).
This is alongside providing 30,000 direct and indirect jobs by 2034.
