Automotive
Develop a sustainable automotive and mobility ecosystem by localizing R&D, mobility solutions, and vehicle manufacturing
The automotive industry’s development at the regional level represents an excellent opportunity for import substitution. Given that it is one of the sectors with the largest GDP and job multiplier, it would boost non-oil GDP growth and employment. The sector has announced strategic investments and alliances, solidifying its role as a catalyst for industry evolution while it focuses on three pillars: Original Equipment Manufacturers (OEMs), Automotive Suppliers, and Mobility Solutions.
Opportunities
- The automotive industry is witnessing technological breakthroughs, which have unlocked many opportunities in the whole value chain
- PIF also initiated projects partnering with global Tier-1 suppliers to localize the manufacturing of automotive components and parts, which will support future demand from local and regional automotive facilities
- Additional opportunities to implement and accelerate mobility solutions and support localization efforts in the sector through local and international partnerships
Portfolio companies in this sector
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Progress
Outcomes through supporting portfolio companies in achieving their business objectives by
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PIF and Hyundai Motor Company signed a joint venture to establish a new automotive manufacturing plant in Saudi Arabia, which will produce 50,000 vehicles.
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PIF and Pirelli signed a joint venture to establish a leading tire manufacturing facility in Saudi Arabia, localizing production, capabilities, and technologies to create a national and regional champion.
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HRH Crown Prince announces “King Salman Automotive Cluster”, for automotive manufacturing activities, located within King Abdullah Economic City. Designed to accelerate the growth of local capacity in manufacturing and sector-related research and development.
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PIF and the Saudi Electricity Company signed a Joint Venture to launch the Electric Vehicle Infrastructure Company (EVIQ). The company aims to build best-in-class infrastructure and create a nationwide network of fast-charging hubs for electric vehicles in Saudi Arabia.
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MASARAT Mobility Park, a strategic partnership with the private sector, aims to enhance Saudi Arabia’s status as a prime destination for automotive and mobility solutions. The company has commenced on site and secured initial commitments, and attracted several global automotive suppliers to set up their business in the park.
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PIF announced TASARU Mobility Investments, Saudi Arabia’s automotive and mobility ecosystem.
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10 December 2024 The PIF Effect: Pioneering investments send ripples of real impact through Saudi Arabia and the worldPIF News Network -
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7 March 2024 Ceer awards construction contract to build its electric car complex in Saudi ArabiaNewswire
