(MENAFN) Saudi Arabia’s economy has long been tied to the oil-dependent auto industry, but the Kingdom is now striving to be at the forefront of the new reality. With 160 vehicle factories online, the country is producing a range of cars, engine parts and accessories to help the domestic sector thrive and drive innovation, with many dedicated to electric vehicles. This move is surprising as it goes against the expected status quo of keeping the auto industry dependent on oil.
According to the Saudi Ministry of Industry and Mineral Resources, there are 33 factories for parts, accessories and engines, 21 for vehicles and structures, including processing works, and 106 for vehicles or trucks trailers and semi-trailers. These factories have optimized cost structures and provide adequate infrastructure to further drive innovation-driven use cases in the Kingdom.
A recent report by leading management consultancy Arthur D. Little Middle East supports this, stating that these factories will drive innovation in the country. This is especially true as car sales in Saudi Arabia are expected to grow 24 percent at a compound annual rate by 2025. The Kingdom’s dedication to electric vehicles and other innovative technologies is a step toward a more sustainable future for the country and the world.
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