While global vehicle producers continue to make headlines with the release of their flashy new cars, the spotlight has been relatively dim on automotive manufacturers within the region.

However, the rise of electric vehicles as the centerpiece of the automotive industry is changing the landscape, with numerous new companies emerging in the region to produce these cutting-edge vehicles and their components.

Countries like the UAE and Saudi Arabia have taken a prominent role in fostering the growth of these modern automotive enterprises.

M Glory’s new electric vehicle

There are 160 vehicle factories in Saudi Arabia, producing a range of cars, engine parts, and accessories, with many dedicated to electric vehicles, an Arab News report said.

The Saudi Ministry of Industry and Mineral Resources has revealed that the factories include 33 for parts, accessories, and engines, 21 for vehicles and structures including processing works, and 106 for trailer and semi-trailer vehicles or trucks.

The kingdom aims to produce about 300,000 cars by 2030. The GCC demand for cars is forecast to hit about 1.15 million in 2025, out of which 62,000 will be electric cars, the report said. 

Three of the major manufacturing projects currently in Saudi Arabia include Lucid, Ceer — both dedicated to electric vehicles — and SNAM, for conventional cars.

Together with optimized cost structures, those plants pose a suitable infrastructure to further propel innovation-driven use cases within the kingdom, according to a recent report released by leading management consultancy firm Arthur D Little Middle East.

Construction of Lucid's Jeddah plant, targeting peak production of up to 155,000 cars a year, got underway last year. Re-assembly operations are expected to begin in September, Lucid said in its presentation.

Lucid is expected to receive financing and incentives of up to $3.4 billion over the next 15 years to build and operate the manufacturing facility in the kingdom.

“Lucid aspires to be a catalyst for change wherever we go, so it makes perfect sense that we are bringing electric vehicles to one of the world’s biggest oil producing nations. Establishing a global manufacturing footprint is a practical, natural step and enables us to grow our brand, scale our business, and address worldwide and untapped market demand on an entirely new level, while also taking action to address climate change through inspiring sustainable transportation,” said Peter Rawlinson, CEO and CTO, Lucid Group. “Our strong relationships with the Public Investment Fund and our partners at MISA, KAEC, and SIDF also give us unique insight into the demand for luxury cars and SUVs in Saudi Arabia and beyond, and we are thrilled to introduce the world’s most advanced electric vehicles to more global markets.”

Lucid reviewed multiple opportunities before selecting KAEC in Saudi Arabia as the optimal location and opportunity for its first international manufacturing facility. The new manufacturing hub will be fully owned by Lucid and enable the company to meet growing international demand for luxury electric vehicles. Lucid also expects to benefit from the availability of competitively-priced commodities and energy and a newly emerging domestic supply chain, and a factory location that facilitates global logistics. The company further expects to be able to access financing to build and equip the manufacturing facility and to train automotive workers.

Lucid initially plans to re-assemble Lucid Air vehicle “kits” that are pre-manufactured at the company’s US AMP-1 Manufacturing Facility in Casa Grande, Arizona, and, over time, produce complete vehicles. At its peak, the company expects to manufacture up to 150,000 vehicles per year at the KAEC facility.

Meanwhile, Aston Martin recently announced a deal with US-Saudi electric vehicle specialist Lucid Group to help make the British group's luxury 'green' cars.

California-based Lucid will supply technology, including battery systems, for cash and shares worth about $232 million, Aston said in a statement.

The deal would make Lucid a minority shareholder with a stake of about 3.7 percent. Saudi became Aston's second-biggest shareholder last year following a capital injection from its sovereign wealth fund.

The Saudi fund is also the biggest investor in Lucid Group.

In the UAE, M Glory Holding is setting up a full-fledged electric vehicle assembly and production facility in plant in Dubai Industrial City. The 1 million sq ft facility will be completed in 2024.

The AED1.5 billion facility will be one of the largest in the Middle East and aims to make 55,000 EVs a year as demand for green mobility rises, the company said.

The models are built using European specifications, and have a battery capacity of 52.7 kWh that can cover about 405km on a single charge.