Lucid set to start manufacturing cars in Saudi Arabia in 2026

[RIYADH] Lucid Group is on track with plans to start producing cars in Saudi Arabia as it looks to drive the kingdom’s ambitions to create a domestic auto manufacturing hub and cut down on imports.

The electric vehicle (EV) maker, which counts Saudi Arabia’s US$1 trillion sovereign wealth fund as its top shareholder, plans to move from assembly to full-scale vehicle manufacturing by year-end at a new facility near Jeddah on the Red Sea, according to Interim chief executive officer Marc Winterhoff.

“We have already started moving in equipment and we are on track,” Winterhoff said. He did not offer initial production estimates but said output would ramp up gradually in 2027 and 2028 before the plant reaches its full capacity of 150,000 vehicles in 2029.

Lucid is the only automaker selling vehicles in Saudi Arabia that have been assembled locally but is one of a growing list of EV producers, including Tesla and BYD, that are rapidly scaling. Such players are looking to get a foothold in the kingdom as it invests heavily in the EV industry in a bid to cut down on emissions, imports and the number of gas-guzzling cars on the road.

Adoption has been slow going amid challenges, including building out an EV charging network. Lucid, the company the Saudis have tapped to lead its EV ambitions, has also struggled more broadly with profitability and production challenges.

It has received several billions from Saudi Arabia’s Public Investment Fund (PIF) in recent years. Winterhoff said that there’s no reason to believe more PIF funding is coming but noted that Lucid is seeking more international funding.

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While Lucid beat on its production targets in 2025, the company has flagged expectations for a deceleration in demand in the US and Europe. Its shares are down more than 60 per cent over the last year, reflecting lingering concerns around profitability, demand and funding costs. BLOOMBERG