by: TN Media News: The Saudi Arabian automotive landscape is poised for a significant transformation driven by local manufacturing and collaborative efforts, as announced by the Ministry of Industry and Mineral Resources. According to the ministry, the Saudi automotive market currently holds a 42% share in the MENA region, with a projected sales forecast of 920,000 vehicles by the year 2035.
This announcement came during the ongoing 6th edition of Automechanica Riyadh, held at the Riyadh International Convention and Exhibition Center (RICEC) on Thursday, 2 May 2024. Eng. Aftab Ahmed, Chief Advisor – Automotive Cluster at the National Industrial Development Centre (NIDC), Ministry of Industry and Mineral Resources, highlighted the rapid evolution of the Saudi Arabian automotive industry under the ambitious Vision 2030 framework.
Eng. Ahmed elaborated on the Kingdom’s strategic initiatives aimed at enhancing the automotive sector, emphasizing innovative practices, international partnerships, and a strong commitment to environmental sustainability as key drivers of growth. Notably, Saudi Arabia is steering towards a future-ready automotive market by embracing King Abdullah Economic City (KAEC) as an auto cluster, with major original equipment manufacturers (OEMs) and suppliers already established and others expected to follow suit.
Underlining the pivotal role of the automotive sector in achieving economic diversification goals, Eng. Ahmed stated, “Saudi Arabia has the commitment and the resources to transform into an industrial-based economy and raise the share of non-oil exports in non-oil GDP from 16% to 50%.”
The NIDC’s strategy includes immediate investments in full-scale manufacturing projects for light vehicles targeting regional and global markets by 2026-2027, along with plans for Fuel Cell Electric projects for commercial vehicles by 2030. Additionally, the focus on an automotive parts ecosystem, particularly on parts shared between Battery Electric Vehicles (BEVs) and Ice-based vehicles, is paramount.
Furthermore, Mr. Ammar Altaf, Assistant Deputy Minister at the Ministry of Investment, underscored the Kingdom’s ambitious strategy, highlighting tangible implementations on the ground. Mr. Altaf revealed targets of manufacturing 600,000 vehicles domestically by 2035, with a projected SAR 22 billion impact on GDP. Noteworthy recent investments include SAR 12 million by Lucid Group and SAR 27 billion by Ceer, the national brand of EVs, aiming to launch by late 2026, collectively aspiring to manufacture around 320,000 vehicles.
Under the patronage of the Saudi Arabian Ministry of Investment, Automechanika Riyadh 2024 has attracted a record-setting participation of over 340 exhibitors from 26 countries, spanning three halls and 11,000 square meters. With a notable 448% increase in exhibitors, the event underscores its pivotal role in the automotive industry.
Expected to draw over 8,000 visitors and featuring six international pavilions, Automechanika Riyadh 2024 also includes the Premium Club, facilitating crucial industry connections. Additionally, a targeted workshop on the final day will emphasize the enduring value of professional development in automotive aftersales.
The 6th edition of Automechanika Riyadh, continuing on Thursday, 2 May, showcases seven key product focus areas: Parts & Components, Tyres & Batteries, Oils & Lubricants, Accessories & Customizing, Diagnostics & Repairs, Body & Paint, and Care & Wash. The event is organized by 1st Arabia Tradeshows & Conferences under a license from Messe Frankfurt Exhibition GmbH.
