German engineering firm FEV and Saudi electric vehicle brand Ceer have signed a letter of intent to collaborate on innovation, industrial development and knowledge transfer, as Saudi Arabia seeks to build a domestic automotive sector.
The agreement, signed in February on the sidelines of the Public Investment Fund (PIF) Private Sector Forum in Riyadh, aims to combine the companies’ expertise to accelerate technological development and strengthen the Kingdom’s mobility ecosystem. Officials from the Saudi Ministry of Investment attended the signing.
Ceer was established in 2022 by Saudi Arabia’s sovereign wealth fund PIF in partnership with Taiwanese contract manufacturer Foxconn to develop battery-electric vehicles for regional and global markets. Production is planned within Saudi Arabia using EV platforms developed by Foxconn or its subsidiary Foxtron. The company now expects to unveil its first models later this year.
The new partnership with FEV is intended to support the creation of a competitive local supplier base and increase domestic value creation in the automotive sector. Ceer has previously secured agreements with international partners, including licensing components from BMW and sourcing electric powertrain technology from Croatian manufacturer Rimac.
“Very special thanks to our suppliers, like FEV, who signed an MoU to partner with CEER to build a competitive supplier ecosystem which is a big enabler to develop the Automotive Industrial Cluster in Saudi Arabia as part of Vision 2030,” said Johnny Saldanha, Ceer’s Chief Procurement and Supply Chain Officer, referring to the national strategy aimed at diversifying the economy beyond oil.
FEV said the collaboration would leverage its experience in automotive engineering and electrification to support local capability building. “By partnering with CEER, we will combine our global expertise in automotive engineering and electrification with our partner’s vision for Saudi Arabia’s electric mobility future,” said Mayank Agochiya, President of FEV Asia.
Ceer Chief Executive Jim DeLuca indicated that the company is entering a critical phase, saying that 2026 would mark the unveiling of its first flagship vehicles designed specifically for regional conditions.
The partnership reflects broader efforts by Saudi Arabia to establish a domestic manufacturing base for advanced technologies, including electric vehicles, as part of its long-term economic transformation agenda.
