Saudi Arabi’s Public Investment Fund (PIF) has announced the launch of the National Automotive and Mobility Investment Company (Tasaru Mobility Investments), an investment company focused on developing local supply chain capabilities for the automotive and mobility industry in the kingdom.
Saudia Arabia has ambitions to position itself as a global leader in the automotive sector. The kingdom has a national EV brand called Ceer, established in partnership with Foxconn.
Hyundai Motor Company and Saudi Arabia are also expected to sign a deal soon to build an electric vehicle (EV) plant in the kingdom targeting growing demand for zero emission vehicles in the Middle East.
PIF has a 60% stake in US-based startup Lucid, which sought to raise $3 billion – mainly from PIF – in June this year. Lucid recently announced its first international manufacturing plant in King Abdullah Economic City (KAEC) had opened.
Michael Müller has been appointed as the Chief Executive Officer (CEO) of Tasaru Mobility Investments. Müller previously held senior management positions at Porsche AG and Volkswagen Group, including heading up both brands in Saudi Arabia, and CEO of Porsche in Central and Eastern Europe.
Tasaru’s first investment is a joint venture with Zamil Group Real Estate Company, Abdullah Ibrahim Alkhorayef Sons Company and Dar Al-Himmah Projects Company Limited to develop an automotive logistics hub in KAEC which will serve the aftermarket parts industry, PIF says.
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Omar Al-Madhi, Co-Head of MENA Direct Investments at PIF and Chairman of Tasaru Mobility Investments, said: “Through a combination of strategic investments and private sector partnerships, Tasaru Mobility Investments aims to enhance the local supply chain and manufacturing capabilities to strengthen the end-to-end ecosystem for Saudi Arabia’s electric vehicle and autonomous mobility industries.
The establishment of the company demonstrates PIF’s commitments to diversify the economy, improve sustainability and localise technology and sector-specific knowledge.”
In its announcement, PIF said that by accelerating the transition to electric vehicles, Tasaru will make “an important contribution” towards Saudi Arabia’s environmental objectives, including its net zero 2060 target, as well as PIF’s own net zero 2050 target.