Saudi Arabia will “absolutely” become a global automotive hub, Faisal Sultan, Vice President and Managing Director of Lucid Middle East told Arabian Business in an exclusive interview.
According to Sultan, the kingdom aims to produce 500,000 electric vehicles annually by 2030, investing $50 billion in the automotive sector over the next decade.
“Saudi Arabia’s strategic investments solidify the kingdom as a leading regional hub in the EV sector, with its unique position that enables it to serve both domestic and international markets,” he said, adding that Lucid is “completely aligned” with the path set by Vision 2030.
Lucid announces Saudi Arabia expansion with new Jeddah facility
“We’re in a unique position where our technological innovation can readily be put to use and is the cornerstone of the Lucid-Saudi Arabia relationship, made possible by our strategic partnership with the Public Investment Fund (PIF).
Our relationship with the PIF is incredibly strong and they are a staunch supporter of our work. Lucid and the PIF have a shared vision of a more sustainable future, and we are jointly committed to making it a reality,” he said.
Sultan’s comments comes as Lucid Motors, a California-based luxury electric vehicle manufacturer, expands its presence in the kingdom with the upcoming opening of a new showroom in Jeddah.
This marks the company’s third studio in the region and represents a strategic step in Lucid’s expansion throughout Saudi Arabia and the broader Middle East.
“Establishing a presence in Jeddah was a natural progression and signifies a strategic step in Lucid’s expansion throughout the kingdom and in the region. This is supported by the growing consumer demand which provides opportunities for us at Lucid to continue investing in the production and distribution of EVs in the kingdom,” he said.
The new Jeddah facility, located in Auto Mall, offers customers an immersive experience with Lucid’s award-winning Air model. Importantly, it also serves as a service centre equipped with advanced diagnostic and repair equipment, capable of handling up to nine base plate repairs simultaneously.
“The studio is conveniently located approximately an hour and a half drive from our state-of-the-art AMP-2 manufacturing facility in King Abdullah Economic City (KAEC). This strategic proximity translates to faster delivery times for our electric vehicles, ensuring you can get behind the wheel sooner at our Jeddah studio. Together, this centre and AMP-2 will not only be catalysts for the EV industry but will also offer a seamless and efficient car-buying experience for our valued customers,” Sultan explained.
Lucid’s AMP-2 facility, currently assembles Lucid Air models with a goal of producing 5,000 cars annually at peak capacity.
Sultan further revealed that Lucid is now expanding its manufacturing footprint and transitioning to complete build unit (CBU) production.
“We are currently expanding our manufacturing footprint and transitioning to complete build unit (CBU) production, a milestone that will immensely increase our additional annual capacity. This strategic move will enable us to better meet the growing demand in Saudi Arabia, the Middle East, and other key regions, ensuring Lucid’s state-of-the-art EVs are more accessible to a global audience,” he said.
The company’s commitment to the kingdom is further solidified by its agreement with the Saudi government to supply up to 100,000 vehicles over a ten-year period.
This includes an initial commitment to purchase 50,000 vehicles, with an option for an additional 50,000.
“Through the development of electric transportation, Lucid will support the Saudi Green Initiative’s imperative to ensure that 30 percent of new car sales in the kingdom are electric by 2030,” Sultan said, adding that Lucid’s expansion in Saudi Arabia aligns closely with the country’s sustainability goals.
However, the road to establishing Saudi Arabia as a global automotive hub is not without challenges. Sultan acknowledges several obstacles in the kingdom’s supply chain, including adapting to the vast infrastructure, high temperatures affecting EV performance, and the availability of skilled workers trained in EV repairs.
“We’re currently tackling each challenge through our exceptional Silicon Valley-developed technology in partnership with key entities such as EVIQ to develop a fast-charging public network, while our MoU with KACST ensures EV adaptation to the climatic conditions in the kingdom. Finally, we are fortunate to already have numerous Saudi nationals working on the production line, who trained at our AMP-1 facility in the USA,” he said.
Lucid to launch new 7-seat SUV as part of vehicle line-up expansions
Looking ahead, Lucid is preparing to expand its vehicle line-up beyond luxury sedans. “We are really excited about the production of the Lucid Gravity. There is a tremendous amount of anticipation for our seven-seat SUV and its launch will introduce Lucid to a much larger audience, marking a significant step in our expansion,” Sultan said.
As for competition in the luxury EV market, Sultan views competition in the electric vehicle market, including new entrants in the Saudi market, are “indeed in Lucid’s favour.”
“As we continue to challenge EV misconceptions in the region, increased competition helps expand the wider EV infrastructure and market. As leaders, our aim remains the same, driving innovation rooted in exceptional Silicon Valley-developed technology. This relentless pursuit of innovation and game-changing technology has led to breakthroughs in battery technology, energy efficiency, and aerodynamics,” he concluded.
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