The latest step taken by Saudi Arabia to achieve its Vision 2030 aim of reducing its reliance on oil and diversifying its economy is the formation of a joint venture between its sovereign wealth fund and Foxconn to produce and sell electric vehicles. According to the statement made on Thursday, the new business, known as Ceer, will use BMW component technology to design, produce, and market a variety of EVs. The electrical architecture of the vehicles is being developed by Foxconn, the massive Taiwanese manufacturing company that produces Apple’s iPhones. According to Saudi Arabia, this will result in a “portfolio of products” in the fields of infotainment, connectivity, and autonomous driving technologies.
The first EV brand in Saudi Arabia, Ceer, according to the Saudi Public Investment Fund, or PIF, will bring in more than $150 million in foreign direct investment and generate up to 30,000 direct and indirect jobs. A significant component of Crown Prince Mohammed bin Salman’s Vision 2030 strategy is foreign direct investment, or FDI. The nation unveiled a national investment strategy last year with the goal of achieving more than $100 billion in FDI yearly by 2030.
The Ceer brand is anticipated to contribute $8 billion to the kingdom’s GDP by 2034, according to the PIF.
PIF has invested heavily in EVs and other clean technology on its own. 2018 saw the PIF make a $1 billion investment in Lucid Motors, making it the company’s largest shareholder. The PIF, which owns 61% of Lucid, pledged to acquire 50,000 of the company’s EVs in the spring of 2022, with an option to buy a further 50,000 over a ten-year period.
Foxconn has been advancing its presence in the automobile industry, particularly in relation to EVs. Lordstown Motors and Fisker have contracts with Foxconn to develop electric vehicles. Additionally, it collaborated with Taiwanese carmaker Yulon Group to create the Model C, an electric SUV. Foxconn Chairman Liu Young-way stated that he hoped to emulate the company’s success in creating consumer electronics by developing EVs for automakers in October at its third annual Hon Hai Tech Day event.
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