LCGPA, CEER sign 2 agreements to localize EV manufacturing with SAR 9B expected GDP impact

The Local Content and Government Procurement Authority (LCGPA) signed two agreements with CEER National Automotive Co. to localize electric vehicle (EV) manufacturing and facilitate knowledge transfer, in exchange for the company's products being included on the Mandatory List of National Products.

The authority said the two agreements aim to localize the manufacturing of sedan and SUV EVs, as part of CEER efforts to launch the first Saudi EV designed, engineered, and manufactured domestically, according to state-run news agency SPA.

The authority also noted that inclusion on the Mandatory List of National Products will help direct government spending toward listed products, while also empowering local manufacturers and national talent, strengthening advanced industrial capabilities in the Kingdom, and bolstering the competitiveness of the industrial sector, contributing to the objectives of Vision 2030.

The two agreements are expected to generate an economic impact of approximately SAR 9.213 billion on GDP over the next 10 years and create more than 2,600 jobs, said the authority’s CEO Abdulrahman Al-Samari.

He highlighted that the automotive industry is one of the world's most important strategic industries and plays a significant role in driving economic growth. It is also one of the sectors targeted under the National Industrial Strategy.

Furthermore, the agreements will contribute to developing strategic industries, strengthening local supply chains, creating employment opportunities, encouraging the procurement of raw materials from the domestic market, and enhancing the competitiveness of Saudi Arabia's industrial sector, Al-Samari added.