The Saudi company “Sumou Holding” will begin producing electric cars within 12 to 18 months, according to CEO Saeed Al-Nahdi.
Sumou Holding had chosen the Chinese company “Enovate Motors International” as a partner to establish a factory for the production of electric cars in the Kingdom.
It will have a production capacity of 100,000 vehicles annually
The two companies signed a memorandum of understanding during Chinese President Xi Jinping’s visit to Saudi Arabia in December.
Al-Nahdi explained that “there are two models of electric cars that we are conducting tests on to determine their suitability for the Kingdom’s climate.
He also added that special studies related to logistical matters are also being carried out, especially in terms of ensuring that vehicle components are obtained quickly and continuously.
The market is also being studied to find out what customer trends to expect.
Al-Nahdi revealed that all these studies have reached the final stages and that their results will be announced soon.
“Sumou” chooses the Chinese “Innovate” to produce electric cars in Saudi Arabia
“Sumou” has not yet specified the location for the construction of its factory, but more than one Saudi official has recently announced that King Abdullah Economic City in Rabigh will represent the hub for manufacturing electric cars in the Kingdom.
The American “Lucid Motors”, in which the Public Investment Fund owns about 60% of its shares, revealed that the assembly of electric cars in King Abdullah Economic City will begin before the end of 2023.
The “Sir National Motor Company” signed an agreement to purchase a plot of land in King Abdullah Economic City to establish a facility for the manufacture of electric cars on it.
The “Sir National Motor Company” is a joint venture between the Public Investment Fund and Foxconn.
Real estate activity constitutes about 85% of the total business portfolio of “Sumu Holding”, with a volume exceeding 20 billion riyals, according to Al Nahdi, who was speaking to “Al Sharq” on the sidelines of the “Future Real Estate Forum” held in the capital, Riyadh.
The Saudi trend toward clean energy
With the trend towards a greener world, the transportation sector is witnessing acceleration towards the electrification of vehicles, and reliance on electric cars.
This trend aims to gradually eliminate cars that run on fossil fuels, the main culprit in climate change.
With electric cars expected to reach a world record level in 2022, this year witnessed many companies announcing their goals for producing electric cars.
As per the Energy Research Unit, many countries offer some incentives that encourage the conversion to them or the development of infrastructure for these types of cars.
According to statistics issued by the International Energy Agency, the transportation sector is responsible for 24% of global greenhouse gas emissions.
Road transport – the most widely used – accounts for 75% of these harmful emissions generated by the transport sector.
Globally, electric car sales in China – the largest market for these types of environmentally friendly cars – jumped in November 2021 by up to 18%, compared to the previous month in October, according to Bloomberg.
According to the China Automobile Association, deliveries of electric and hybrid cars rose on an annual basis by 121% last November to reach 378 thousand units. This is compared to 321 thousand units in October.
According to the Saudi Arabian Government’s plan announced in 2021, the country will invest heavily to reach carbon neutrality by 2060. This will include converting about 30% of the cars that currently drive on the streets of the capital, Riyadh, into electric cars by 2030.
Saudi Arabia’s goal regarding electric cars comes as part of a plan to halve carbon emissions in Riyadh, which has a population of 8 million.
Saudi Arabia is also seeking, during the next nine years, to neutralize carbon, according to Bloomberg, according to Fahd Al-Rasheed, head of the Royal Commission for the City of Riyadh.
Lucid is in talks with the Saudi Public Investment Fund to build an electric vehicle factory in the kingdom.
This comes with Australian company EV Metals Group Plc announcing a project to invest $3 billion in Saudi Arabia to process minerals used in electric car batteries.