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Saudi Arabia's Public Investment Fund (PIF) announced to launch Ceer, a joint venture between the the sovereign wealth fund and Hon Hai Precision Industry Co., or Foxconn. As the first EV brand in Saudi Arabia, Ceer will design, manufacture and sell a portfolio of EVs that will lead in the areas of infotainment, connectivity and autonomous driving technologies. Its vehicles, including sedans and sports utility vehicles are set to target consumers in the Kingdom and other regions in the Middle East and North Africa. The venture will adopt licensed component technology from BMW in the vehicle development process, and its vehicle products are scheduled to be available in 2025.

PIF expected Ceer to attract over US$150 million of foreign direct investment, and to create up to 30,000 direct and indirect jobs. The fund also set a target for the venture to directly contribute US$8 billion to the Kingdom’s GDP by 2034. Foxconn will leverage technological expertise to help develop electrical architecture. “We want to make electric vehicles mainstream, and that is what Ceer is going to achieve in Saudi Arabia and the wider region,” Foxconn Chairman Young Liu said.

PIF and Foxconn didn’t disclose funding details about the venture. A report from the Wall Street Journal earlier this year said Foxconn was in talks with Saudi Arabia to about joint investments in a US$9 billion facility, which could be a producer of microchips, EV components and other electronics like displays. The talk is made as Taiwan-based Foxconn was seeking to diversify its production sites amid rising tension between China and the United States.

In Foxcoon’s annual Tech Day last month, Chairman Yong Liu said his company wants to replicate its success in assembling consumer goods as it taps into EV sector, suggesting it aims to obtain about 40% to 50% of market shares like it achieved in the PC and mobile markets in the long run. Liu said Foxcoon didn’t intend to sell EVs under its own brand and hopes to make vehicle to Tesla in the future.

快報