Saudi Arabia's Two-Track EV Strategy

AI-imagined Ceer EV in civilian trim, parked near Riyadh's Kingdom Centre Tower.

By EVWorld.com Si Editorial Team

Saudi Arabia is accelerating its entry into electric-vehicle manufacturing, backing two distinct automakers as part of a broader effort to diversify its economy. Public reporting shows that the kingdom's Public Investment Fund is financing both Lucid Group, the California luxury EV maker, and Ceer, a new Saudi brand developing its first electric model with support from established global suppliers.

Ceer, founded in 2022 as a joint venture between PIF and Foxconn, has begun testing early prototypes on Saudi roads. Outlets including MotorBiscuit and Gizmodo report that the vehicle features a sharply angled, wedge-like profile with gullwing doors and a tall, flat front end. Ceer states that its vehicles will use licensed technology from BMW, while additional reporting notes engineering contributions from Rimac and Hyundai. The company plans to build its vehicles inside the kingdom, though detailed specifications have not yet been released.

Lucid, by contrast, is further along in its development. According to Arab News and Rasmal, the company has opened a facility in King Abdullah Economic City supported by roughly $1.8 billion in Saudi investment. Lucid has said the plant will assemble vehicles for regional markets and eventually expand into full manufacturing.

Public statements from PIF and the companies involved frame these developments as part of Vision 2030, the kingdom's long-term plan to expand high-tech manufacturing and reduce reliance on oil. EVLife reports that PIF is supporting several EV initiatives simultaneously, including Lucid, Ceer, and Hyundai, as it builds out charging networks, supply chains, and workforce training programs.

Available reporting does not indicate any direct operational link between Lucid and Ceer. There is no evidence that the companies share platforms, suppliers, or engineering resources beyond their common investor. Their market positions remain distinct: Lucid targets the luxury segment, while Ceer is developing a mass-market offering.

Still, the timing underscores the scale of Saudi Arabia's ambitions. Few countries have attempted to launch two EV manufacturers at once, and fewer still have done so while building the supporting industrial base. For now, the two companies are advancing on parallel tracks - one premium, one mainstream - each backed by the same sovereign fund and each positioned to play a role in the kingdom's emerging electric-vehicle landscape.

If the strategy succeeds, Saudi Arabia could become a new node in the global EV supply chain. If it falters, the kingdom will have spent billions trying to break into one of the world's most competitive industries. For now, the early signals point to a country moving quickly, with two automakers at the center of its plans.

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