On Thursday, Crown Prince Mohammad bin Salman bin Abdulaziz of Saudi Arabia unveiled the first Saudi automotive firm, Ceer, to develop and manufacture electric cars.
This firm is a partnership between the Public Investment Fund (PIF) of the monarchy and the Hon Hai Precision Industry Co., better known as Foxconn. It will produce and market various automobiles, such as sedans and SUVs, to customers throughout the MENA area.
The oil-rich nation of Saudi Arabia is also putting money into the emerging electric car market. The firm considered joining the discussions to take Tesla private but ultimately decided against it. It has also invested in Lucid Motors, a startup that intends to construct a nationwide manufacturing facility.
According to the statement made on Thursday, a new firm named Ceer would use BMW’s component technology to create, produce, and market a line of electric vehicles. Foxconn is developing the electrical architecture of cars. According to Saudi Arabia, this Taiwanese production giant creates Apple’s iPhones will result in a “portfolio of goods” in entertainment, connection, and autonomous driving technology.
As part of Crown Prince Mohammed bin Salman’s efforts to diversify the Saudi economy, the sovereign wealth fund has teamed with Taiwanese tech firm Hon Hai Precision Industry to produce electric cars.
What is CEER Planning?
According to a Thursday statement by the Saudi Public Investment Fund, a new brand called Ceer would license component technology from BMW and develop and build automobiles in Saudi Arabia for customers in the Middle East and North Africa area. The first Ceer automobiles are scheduled to be released to the public in 2025.
“Saudi Arabia is not just building a new automotive brand, we are igniting a new industry and an ecosystem that attracts international and local investments, creates job opportunities for local talent, enables the private sector, and contributes to increasing Saudi Arabia’s GDP over the next decade, as part of PIF’s strategy to drive the economic growth in line with Vision 2030”Mohammed bin Salman said
According to the Saudi Public Investment Fund (PIF), Ceer is the country’s first electric vehicle (EV) brand. It is expected to bring in over $150 million in FDI and generate up to 30,000 employment directly and indirectly. FDI, or foreign direct investment, is crucial to Crown Prince Mohammed bin Salman’s Vision 2030 initiative. A national investment plan targeting annual FDI of over $100 billion by 2030 was unveiled last year.
Hon Hai Precision Industry, commonly known as Foxconn, showed two vehicle prototypes in October and announced plans to expand into the electric vehicle (EV) market in Thailand, the United States, and Taiwan.
“Foxconn is excited about our partnership with PIF to create a new automotive company that will focus on designing and manufacturing electric vehicles in and for Saudi Arabia. We will leverage Foxconn’s technological expertise to support Ceer’s vision of creating a range of iconic electric vehicles built around connectivity, infotainment and autonomy. We want to mainstream electric vehicles, and that is what Ceer will achieve in Saudi Arabia and the wider region.”Chairman of Hon Hai Technology Group, Young Liu, said
Foxconn, the biggest contract electronics manufacturer in the world and the company responsible for assembling the iPhone and MacBook, has been constructing a full EV supply chain, including batteries and semiconductors, to diversify its income streams. Its primary function will be to create the electrical system for Ceer vehicles.
While the Public Investment Fund of Saudi Arabia is providing initial funding, Ceer has also said it would seek “over US $150 million in international direct investment” and expects to contribute “US $8 billion to Saudi Arabia’s GDP by 2034.”
It was stated last month that Saudi Arabia aims to sell 150,000 electric vehicles by 2026. We had anticipated that most of this funding would come from Lucid and possibly other established EV brands eager to invest in the nation. Still, we know that it intends to use its branding to contribute.