Lucid Motors, a renowned manufacturer of luxury electric vehicles, has successfully inaugurated its inaugural overseas manufacturing facility in Saudi Arabia. This state-of-the-art plant is anticipated to have an impressive annual production capacity of 155,000 electric vehicles.
In a recent statement, PIF-backed Lucid revealed that it has started the assembly of its flagship luxury sedan, Lucid Air. This assembly is taking place at the factory located near Jeddah. In addition, this significant milestone marks the beginning of production for Lucid Air in the new Saudi Arabian facility.
Lucid has established a second advanced manufacturing plant (AMP-2). This plant is situated in the King Abdullah Economic City (KAEC). It follows their initial facility (AMP-1) located in Arizona. Also, this new plant in KAEC serves as a testament to Lucid’s expansion and commitment to advanced manufacturing capabilities.
With a capacity to assemble “5,000 Lucid vehicles annually” using a semi knocked-down approach, the AMP-2 facility plays a crucial role in Lucid’s manufacturing process. Currently, it focuses on reassembling Lucid Air vehicle kits that are pre-manufactured at the AMP-1 plant, ensuring efficient production and delivery of high-quality vehicles.
In March 2022 of, U.S.-listed Lucid entered into agreements with Saudi’s Ministry of Investment, the Saudi Industrial Development Fund, and King Abdullah Economic City (KAEC) for the establishment of their factory. Moreover, these agreements solidified the collaboration and support from various entities in Saudi Arabia for the successful realization of Lucid’s manufacturing facility.
Additionally, in August 2023, Lucid Motors implemented a price reduction of 9-11 percent for its electric vehicles (EVs) in Saudi Arabia. This adjustment in pricing aligns with the company’s global selling price adjustments. Lucid Motors clarified that the reduced prices will remain unchanged throughout the current year, offering customers stability and assurance in their purchase decisions.
Goldman Sachs predicts that by 2035, electric vehicles will constitute approximately 50 percent of global new car sales. The growth is driven by the increasing momentum towards achieving net-zero carbon emissions. In addition, this projection highlights the significant shift towards sustainable transportation. Also, it reflects the growing demand for electric vehicles in the coming years.
Furthermore, according to a report from the International Energy Agency, the electric car markets are undergoing remarkable expansion, as evidenced by sales surpassing 10 million vehicles in the previous year. The report provides additional insights. It highlights that electric cars accounted for 14 percent of all new car sales in 2022. This reflects a notable increase from approximately 9 percent in 2021. In the preceding year, electric car sales were less than 5 percent. This data underscores the accelerating adoption of electric vehicles worldwide.
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