Lucid Motors, the electric vehicle manufacturer, recently inaugurated its second vehicle plant near Jeddah, Saudi Arabia. This plant, initially designed to assemble semi knocked-down Lucid Air sedans at a rate of 5,000 units per year, is expected to expand later in this decade to accommodate the complete production of Lucid vehicles at a rate of 150,000 units annually. This new facility aims to serve both the domestic market in Saudi Arabia and global export demands.
Lucid’s first manufacturing plant, located in Casa Grande, Arizona, also produces the Lucid Air sedan. When fully expanded, it is projected to have an annual capacity of 365,000 units. The strategic location of Lucid’s plants allows the company to cater to different markets effectively and meet the rising demand for electric vehicles worldwide.
What sets Lucid apart from other automakers is its significant shareholder, the Public Investment Fund (PIF) of Saudi Arabia. As part of the investment deal with Lucid, PIF has agreed to purchase 100,000 vehicles from Lucid over a 10-year period. This partnership not only demonstrates mutual trust and support but also drives the growth and development of the electric vehicle industry in Saudi Arabia.
Saudi Arabia, known for its rich oil reserves, is actively diversifying its economy by investing in various industries, including electric vehicles. In addition to Lucid, the country announced the launch of its own EV brand, Ceer, last year. Ceer plans to introduce its first electric model by 2025, contributing to the country’s goal of reducing its dependence on oil and embracing sustainable technologies.
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Lucid’s expansion into Saudi Arabia follows previous attempts by other automakers to explore local car production. Jaguar Land Rover conducted a feasibility study in 2012 to assess the potential of manufacturing vehicles in Saudi Arabia. However, no further steps were taken in that direction.
Peter Rawlinson, the CEO of Lucid Motors, expressed his enthusiasm for the company’s presence in Saudi Arabia, stating, “We are delighted to make history today in Saudi Arabia by opening the country’s first car manufacturing facility, which will produce our award-winning electric vehicles and support the country’s vision for a more sustainable and diversified economy.” This development aligns with Saudi Arabia’s long-term economic goals and showcases Lucid’s commitment to sustainable mobility.
While Lucid expands its production capabilities, the company is also strategically adjusting its pricing to boost sales. In a recent earnings announcement, Lucid revealed delivering only 1,404 units in the second quarter and expects to produce a total of 10,000 units in 2023. However, the introduction of Lucid’s second model, the Gravity SUV, slated for debut in November 2022, is expected to invigorate production in late 2024.
Lucid Motors’ commitment to global expansion, strategic partnerships, and technological innovation positions the company as a leading player in the rapidly evolving electric vehicle industry. By establishing a manufacturing presence in Saudi Arabia, Lucid not only contributes to the country’s economic diversification efforts but also helps pave the way for a sustainable and eco-friendly future. With continued investment and development, Lucid Motors aims to establish itself as a premier electric vehicle manufacturer globally, serving the growing demand for cleaner and more efficient transportation solutions.
