Saudi Arabia’s Automotive Industry: Progress Towards Becoming a Regional Hub

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.
 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.
 Achievements in the Saudi 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.
 Localization of OEMs and Suppliers
 The Kingdom has successfully localized operations for more than four leading Original Equipment Manufacturers (OEMs) and seven key suppliers, reducing reliance on imports and strengthening the local supply chain.
 Ceer Motors
 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
 Lucid started assembly in 2023 and has established a local manufacturing plant in Saudi Arabia, one of the biggest US investments by Saudi Arabia’s Public Investment Fund (PIF). Lucid Motors is a game-changer in the global electric vehicle market, 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.
 Hyundai Motor Company
 The Ministry of Industry and Mineral Resources, in collaboration with the Public Investment Fund (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.
 National Automotive & Vehicles Academy
 The establishment of the National Automotive & Vehicles Academy (NAVA) marks a pivotal step in equipping the Saudi workforce with cutting-edge skills in EV manufacturing and advanced automotive technologies.
 Building a Globally Competitive Supply Chain
 The Ministry of Industry and Mineral Resources is actively working to strengthen supply chain resilience and reduce dependency on imports, and efforts with stakeholders are ongoing to establish Local Suppliers Development Program which aims to upskill and certify local suppliers, ensuring Saudi-based companies meet international automotive standards; enhance competitiveness, positioning Saudi suppliers as key players in the global automotive market; and foster collaboration, building long-term partnerships between local suppliers and leading OEMs to drive industrial growth.
 Driving Workforce Development
 A skilled workforce is critical to the success of Saudi Arabia's automotive ambitions. Recognizing the shortage of qualified local talent, the Ministry of Industry and Mineral Resources 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.
 Through collaborations with the Custodian of the Two Holy Mosques Scholarship Program and leading global universities, Saudi Arabia is investing in educating local talent in automotive-related specializations.
 As part of Vision 2030, the Human Capability Development Program focuses on building a sustainable national workforce to meet the demands of the growing automotive industry.
 Saudi Arabia’s automotive strategy is built on a commitment to sustainability and innovation. The Kingdom is investing heavily in electric vehicles, autonomous mobility, and clean transportation technologies, aligning its goals with the global push for environmental sustainability.
 Saudi Arabia aims to achieve a 30% electric vehicle (EV) fleet penetration in Riyadh by 2030 as part of its pledge to reach net-zero emissions by 2060. This initiative aligns with global efforts to phase out internal combustion engines and reflects the Kingdom’s commitment to sustainability and clean mobility.
 Economic Impact and Future Growth
 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—creating between 5 to 7 jobs in adjacent industries for every direct OEM job—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, driven by strategic investments in local manufacturing, introduction of innovative and sustainable mobility solutions, and development of a skilled workforce aligned with global automotive standards.
 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.
 The progress made so far demonstrates that Saudi Arabia is not just building cars—it is building a future of sustainability, innovation, and opportunity. With its strategic vision, the Kingdom is set to become a regional hub for the automotive industry, shaping the future of mobility and contributing to a cleaner, more sustainable world.