Is Ceer on Target to manufacture EVs in Saudi Arabia?

Ceer, Saudi Arabia’s first electric vehicle (EV) brand, is making steady progress toward manufacturing cars in the Kingdom, with a target to roll out its first vehicles in late 2026. Here’s a concise update based on recent developments:

Manufacturing Complex:

Ceer has awarded a SAR 5 billion (USD 1.3 billion) contract to Modern Building Leaders for its EV manufacturing complex in King Abdullah Economic City (KAEC). Construction began in early 2024, and by August 2024, the first steel frame was raised, marking a key milestone. The facility spans over 1 million square meters and includes zones for press, body, paint, assembly, logistics, and testing. It’s designed to produce sedans and SUVs with advanced technology.

Partnerships:

Ceer has secured significant deals to support production: A SAR 8.2 billion (USD 2.18 billion) agreement with Hyundai Transys for electric drive systems, enhancing efficiency.

A SAR 543 million (USD 145 million) deal with Italy’s Sabelt for high-performance sports seats.

Collaborations with BMW for licensed component technology, Foxconn for electrical architecture, and Rimac Technology for high-performance drive systems.

A partnership with Schuler for an advanced press shop to enable high-output manufacturing.

Infrastructure and Ecosystem:

Ceer signed an MoU with the Electric Vehicle Infrastructure Company (EVIQ) in October 2024 to develop reliable EV charging infrastructure in Saudi Arabia. Another MoU with the Royal Commission for Yanbu aims to boost industrial collaboration and talent development.

Economic Impact:

Ceer aligns with Saudi Vision 2030, aiming to contribute USD 8 billion to GDP by 2034 and create up to 30,000 jobs. It has attracted over USD 150 million in foreign direct investment and signed SAR 5.5 billion in deals at the 2025 PIF Private Sector Forum, 80% with Saudi firms, strengthening the local supply chain.

Is Ceer On Track?:

Ceer appears on track for its 2026 production goal, supported by rapid construction progress and strategic partnerships. However, some analysts note challenges, such as building a robust local supply chain and attracting component manufacturers, which could impact timelines. A source cited by Reuters suggested a vehicle launch before 2026 is unlikely, but Ceer’s CEO, Jim DeLuca, remains confident in meeting the late 2026 target.

Overall, Ceer is advancing toward becoming a cornerstone of Saudi Arabia’s automotive industry, with significant investments and partnerships in place, though scaling up local manufacturing remains a critical hurdle to watch.