Saudi Arabia's earlier attempts to build a domestic auto industry have struggled. A proposed Jaguar Land Rover plant collapsed more than a decade ago, while Toyota walked away from a similar proposal in 2019, citing high labour costs and a limited supplier base.
This time, the kingdom is betting on Ceer, a joint venture between its Public Investment Fund and Taiwan's Foxconn. The company unveiled its first two production models on Monday, a sedan and an SUV, as part of its Exobot range. The vehicles feature a futuristic, Tron-inspired design, gullwing doors and no centre pillar between the front and rear seats.
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The design uses a structural approach made possible by high-strength materials rather than a traditional frame. Sales are set to begin in Saudi Arabia in early 2027.
“We wanted to make sure the world could see what Saudi Arabia is capable of,” CEO Jim DeLuca said, reported Reuters.
A Wider Network Of Partners
What's different from Saudi Arabia's earlier attempts is the breadth of Ceer's network of partners and suppliers. Foxconn developed the Exobot's electrical architecture, while BMW handled engineering.
A group of global suppliers, including America's Lear, South Korea's Shin Young, Germany's Benteler and China's Fangxin, have also opened factories in Saudi Arabia. The companies have been drawn by government incentives aimed at establishing a local automotive supply chain and reducing reliance on imports.
Moving Beyond EVs
Ceer is not planning to remain an EV-only automaker. DeLuca said the lineup will expand into plug-in hybrids and combustion-engine models as the company responds to changing demand.
Five more mainstream vehicles are planned between 2028 and 2030. They are being engineered to meet global regulatory standards, allowing the company to target export markets.
Ceer plans to expand into neighbouring markets by 2028 before targeting the wider Middle East and North Africa region by 2034.
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“We want to make sure we move very methodically,” DeLuca said.
DeLuca, who previously led VinFast, said he has seen firsthand how quickly expansion can put pressure on an automotive startup.
The wider EV industry has also seen several startups, including Fisker, Arrival and Lordstown, struggle or cease operations as companies have faced challenges related to funding, production and demand.
Launching Into A Challenging Market
Ceer's launch comes as competition in the global auto industry intensifies, particularly in electric vehicles. Chinese automakers have expanded rapidly, competing on pricing, technology and product development.
The company is also entering the market amid broader logistical and inflationary pressures linked to the ongoing US-Israel conflict with Iran, adding another layer of uncertainty to its expansion plans.
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