Riyadh - Mubasher: The Ministry of Industry and Mineral Resources expects the automotive sector in the Kingdom to grow at an annual rate of 12% by 2030, driven by new investments in local manufacturing, the introduction of sustainable mobility solutions, and the development of a skilled workforce.

The ministry said in a statement that the Kingdom provides a conducive environment for sustainable growth in the automotive sector, with the introduction of electric vehicles ( EV ), the establishment of local manufacturing plants and talent development programs.

She pointed out that Saudi Arabia is accelerating its steps to become a major player in the global value chain of the automotive industry, by localizing major original equipment manufacturers ( OEMs ), establishing national training academies, and focusing on modern technologies such as e-mobility and autonomous driving to achieve its vision of becoming a regional hub for the automotive industry.

The Kingdom has successfully localized the operations of more than four leading original equipment manufacturers ( OEMs ) and seven major suppliers, reducing reliance on imports and strengthening the local supply chain.

SEER Automotive Company, the first national car brand, was launched through a partnership between the Public Investment Fund and Hon Hai Precision Industry Corporation (Foxconn).

SEER is developing an innovative range of electric vehicles that focus on e-mobility, connectivity, and autonomous driving technologies, reflecting the Kingdom’s focus on advanced and sustainable mobility.

The ministry explained that Lucid began assembly operations in 2023 and established a local factory in the Kingdom, which is one of the largest US investments by the Public Investment Fund.

Lucid revealed that it has revolutionized the global electric vehicle market, with plans to reach production of up to 150,000 cars annually.

The Ministry of Industry and Mineral Resources, in cooperation with the Public Investment Fund, has also succeeded in attracting Hyundai Motor Company to establish an advanced car manufacturing plant in the Kingdom, with a total investment value of more than $500 million. The facility will produce 50,000 vehicles annually, including electric vehicles and internal combustion engines, significantly enhancing local manufacturing capabilities.

The ministry said that the establishment of the National Academy for Cars and Vehicles ( NAVA ) is a pivotal step in equipping the Saudi workforce with advanced skills in manufacturing electric vehicles and modern technologies in the automotive industry.

The Ministry of Industry and Mineral Resources is working to enhance the flexibility of the supply chain and reduce dependence on imports, through the Local Supplier Development Program, where efforts aim to: Develop and certify local suppliers: to ensure that Saudi companies comply with global standards for the automotive industry.

In addition to enhancing competitiveness: to make the Saudi supplier a major player in the global market, and enhancing cooperation: by building long-term partnerships between local suppliers and leading manufacturers to drive industrial growth.

The Ministry of Industry and Mineral Resources explained that it has launched several initiatives, including: specialized training programs and scholarships through the National Automotive Academy ( NAVA ) in cooperation with the National Academy of Industry. - The Kingdom provides advanced training in the manufacture of electric vehicles and modern technologies - It also launched the Custodian of the Two Holy Mosques Scholarship Program: in cooperation with leading international universities.

She stated that the Kingdom's strategy in the automotive sector is based on a commitment to sustainability and innovation, and the Kingdom is investing heavily in electric vehicles, autonomous mobility, and clean transportation technologies, in line with global efforts to achieve environmental sustainability.

She pointed out that the Kingdom aims to achieve a 30% penetration rate of electric vehicles in Riyadh by 2030, as part of its commitment to reach net zero emissions by 2060.

The automotive sector is a major contributor to national economies around the world, and the Kingdom is leveraging this sector to drive economic growth and provide job opportunities, as the sector provides between 5 to 7 jobs in adjacent industries for every direct job in original equipment manufacturers ( OEMs ), which boosts the Kingdom’s GDP and provides thousands of high-quality jobs for citizens.

She noted that the Kingdom's ambitions in the automotive sector do not stop at production and manufacturing, but rather the Kingdom seeks to build a sustainable and competitive ecosystem that combines localization, innovation and global cooperation.