Core Insights - Saudi Arabia is shifting from being a consumer to a manufacturer in the automotive industry, aiming to establish a local vehicle production base as part of its Vision 2030 initiative [4][7][9] - The memorandum of understanding signed with Stellantis and Petromin marks a strategic step towards localizing production and enhancing the supply chain in Saudi Arabia [7][8] - The automotive market in Saudi Arabia is transitioning, with a significant focus on electric vehicles (EVs) and a projected increase in local manufacturing capabilities [11][12][14] Group 1: Memorandum of Understanding - The memorandum aims to assess the feasibility of building a vehicle manufacturing plant in Saudi Arabia, focusing on both passenger and commercial vehicles [7] - Key players involved include the Saudi Investment Ministry, the National Industrial Development Center, Stellantis, and Petromin, emphasizing local production and job creation [8] - The project is still in the early stages, with specific investment amounts and production capacity details yet to be disclosed [7] Group 2: Market Dynamics - Saudi Arabia is the largest automotive market in the Middle East, with passenger vehicles expected to account for over 70% of the market by 2024, while traditional fuel vehicles still dominate [11] - The demand for electric vehicles is growing, with sales projected to reach approximately 24,000 units in 2024, marking it as the fastest-growing segment [11] - Chinese brands are gaining traction in the EV market, with expectations to increase their market share in the Middle East and Africa from about 10% in 2024 to over 30% by 2030 [11] Group 3: Strategic Partnerships - The King Salman Automotive Industry Cluster is being developed in the Red Sea Economic City, attracting companies like Lucid and Hyundai to establish manufacturing facilities [12][13] - Stellantis is investing in local production to align with its "Dare Forward 2030" strategy, aiming for a 22% market share in the region and a significant increase in electric vehicle offerings [14][16] - The collaboration with Stellantis is seen as a way for Saudi Arabia to diversify its economy and reduce reliance on oil by developing a robust automotive manufacturing sector [17][18]