Saudi Arabia's 160 Vehicle Factories Show Dedication to Innovation, Sustainability
Date
4/10/2023 1:57:48 AM
(MENAFN) Saudi Arabia's Economy has long been tied to the oil-reliant automobile 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 fuel innovation, with many dedicated to electric vehicles. This move is surprising, as it goes against the expected status quo of maintaining the oil-reliant automobile industry.
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 trailer and semi-trailer vehicles or trucks. These factories have optimized cost structures and provide a suitable infrastructure to further drive innovation-driven use cases within the Kingdom.
A recent report by leading management consultancy firm Arthur D. Little Middle East supports this, stating that these factories will propel innovation in the country. This is especially true as car sales in Saudi Arabia are expected to grow by 24 percent at a compound annual rate by 2025. The Kingdom's dedication to electric vehicles and other innovative technologies is a step towards a more sustainable future for the country and the world.
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