KING ABDULLAH ECONOMIC CITY, Saudi Arabia/LONDON, Sept 21 (Reuters) – Saudi startup Ceer made public its first two fully electric vehicle models on Monday and said it will launch five more models by 2030 as part of Saudi Arabia’s goal to create a viable auto industry to curb the country’s dependence on oil.
Called Exobot, the futuristic premium electric sedan and SUV will start sales in Saudi Arabia in early 2027.
With designs reminiscent of cars from sci-fi thriller “Tron”, both vehicles have “gullwing” doors that open upward.
Ceer has also removed the pillars normally found between a car’s front and rear seats and relies instead on high-strength materials to provide structural support, Ceer CEO Jim DeLuca said.
“We wanted to make sure the world could see what Saudi Arabia is capable of,” he said.
CHALLENGING TIMES TO LAUNCH NEW CARS
Ceer’s efforts to impress the market coincide with the greatest period of upheaval in the established car industry in the last century as Chinese automakers take share from traditional rivals and lead the world in developing flashy new EVs.
Ceer, a joint venture between Saudi Arabia’s sovereign wealth fund Public Investment Fund and Taiwanese contract electronics manufacturer Foxconn, has the advantage of backing from the kingdom’s oil wealth.
But it still has to overcome the problems that have thwarted previous Saudi Arabian efforts to diversify into local car production and the logistics and inflationary problems linked to the US-Israeli war on Iran.
Saudi Arabia’s previous efforts include proposals for a Saudi-based Jaguar Land Rover factory that were abandoned over a decade ago.
Toyota declined a deal in 2019, citing high labour costs and a lack of local suppliers.
This time, Ceer has taken a broader approach, leaning on global partners and also a growing local network to provide parts.
Foxconn has provided the electrical architecture for the Exobots, while German premium automaker BMW provided engineering.
Top-tier automotive suppliers, including U.S. firm Lear, Korea’s Shin Young, Germany’s Benteler and China’s Fangxin, have set up Saudi factories, encouraged by Saudi government incentives.
Ceer is also taking a broad approach.
Originally set up as a pure EV maker, its full lineup will include plug-in hybrids and combustion-engine models to react to shifting market demand, DeLuca said.
Following the EV launch on Monday, Ceer will launch five mainstream models between 2028 and 2030.
DeLuca said Ceer’s upcoming mainstream models would be designed to meet all global regulatory requirements, so they could be ready for sale anywhere.
The company aims to expand carefully through 2034, into surrounding markets in 2028 then across the Middle East and North Africa.
“We want to make sure we move very methodically,” DeLuca said. “It only takes one mistake and you can kill a startup.”
A number of EV startups including Fisker, Arrival and Lordstown have failed in the last few years.
Vietnamese EV maker VinFast, where DeLuca previously served as CEO, is restructuring after spending billions of dollars on expansion.
(Reporting By Nick Carey; editing by Barbara Lewis)
Comments