Tasaru Mobility Investment will spearhead partnerships and strategic investments to localize production.
The Public Investment Fund of Saudi Arabia has established a new business to promote the production of electric vehicles in the country and strengthen local supply chains for the transportation and automotive sectors.
According to a statement from PIF, the new company, National Automobile and Mobility Investments the company, or Tasaru Mobility Investments, aims to promote strategic investments and partnerships with domestic and international private firms.
Tasaru further stated that it planned to localize production and technology to hasten the growth of the kingdom’s EV and autonomous transportation ecosystem.
Omar Al-Madhi, co-head of the Middle East and North Africa, said, “The formation of the company demonstrates PIF’s commitment to diversify the economy, enhance sustainability, and localize technology and sector-specific knowledge.”
Additionally, the new business will encourage the use of cutting-edge technology, research and development, and look for sustainable business prospects in the automotive industry.
According to PIF, its first investment is a joint venture to build an auto logistics hub in King Abdullah Economic City alongside Zamil Family Real Estate the company, Abdullah Ibrahim Alkhorayef Sons Company, and Dar Al-Himmah Projects Company Ltd.
Tasaru will own the majority of the stock in the new business.
Saudi Arabia, the largest crude exporter in the world and the top oil producer in Opec, has set lofty goals to combat climate change and reduce carbon emissions in order to transform its economy and lessen its dependency on oil.
By 2060, the nation wants to have net-zero emissions of carbon.
Tasaru will advance the nation’s environmental goals, notably its net-zero 2060 aim and PIF’s own net-zero 2050 target, by expediting the switch to EVs and future transportation options.
The global EV market is expanding as governments and society turn toward energy efficiency and environmentally friendly transportation.
According to research from Fortune Business Insights, the global EV industry is expected to increase by more than three times to around $1.6 trillion by 2030 from an anticipated $500 billion in 2023.
As parts of its Vision 2030, Saudi Arabia, the largest economy in the Arab world, is putting a lot of effort into developing its local EV market to aid in the transition and expand its domestic manufacturing industry.
5,000 fast chargers will be installed nationwide by 2030, according to a new electric vehicle (EV) infrastructure firm that PIF & Saudi Electricity firm launched on Monday.
The PIF-backed luxury EV manufacturer Lucid Group announced last month that it has opened its first overseas manufacturing facility in Saudi Arabia. This facility is projected to create 155,000 electric vehicles annually.
The PIF introduced Ceer, the first electric car brand in the country, in November of last year. Ceer hopes to bring in over $150 million in foreign direct investment & generate up to 30,000 jobs, both direct and indirect.
Since 2017, 89 new companies have been founded by the PIF, the organization at the heart of the kingdom’s diversifying drive.