As Chinese electric vehicle manufacturers expand their influence in the global market, the automotive industry is undergoing a rapid transformation. Countries with traditionally weak automotive sectors are now leveraging electric vehicles as a new growth engine, establishing their own brands and production bases.
Saudi Arabia's first domestic car brand, CEER, announced on September 22 that it has unveiled its electric 'Exobot' sedan and SUV. CEER is the first automotive brand to produce vehicles in Saudi Arabia, formed as a joint venture between the Public Investment Fund (PIF) and Foxconn.
The Exobot, introduced for the first time, is the first model in CEER's planned lineup of seven vehicles to be launched by 2030. The company plans to expand into the mid-size and compact segments, targeting a wide range of customers and price points through various powertrains.
All Exobots will be produced at the King Abdullah Economic City (KAEC), one of the largest and most advanced automotive manufacturing facilities in the Middle East. CEER aims to begin production in the fourth quarter of this year and expects to contribute $8 billion (approximately 30 billion riyals) to Saudi Arabia's GDP by 2034.
In Vietnam, the electric vehicle business is growing based on VinGroup's leading electric vehicle company, VinFast. Last year, 175,099 electric vehicles were delivered in Vietnam, and from January to July this year, 137,697 units were sold, with an annual sales target of 300,000 vehicles. The Vietnamese government is also protecting its domestic industry by exempting registration fees for electric vehicle purchases and imposing high tariffs on imported electric vehicles.
In Latin America, the Mexican government is leading Olinia, which aims to produce low-cost electric vehicles priced between 90,000 and 150,000 pesos (approximately $7,350 to $12,250). Considering the relatively insufficient charging infrastructure, the vehicles are designed to be charged using standard household outlets.
Turkey is also preparing to become a significant player in electric vehicle production. The Turkish automotive joint venture group, TOGG, recorded the highest sales in the domestic electric vehicle market last year, showing rapid growth. The government has designated TOGG's electric vehicle production facility as a target for national support, providing active assistance through joint investments, employment support, and tax incentives.
The entry of emerging countries into the automotive market is facilitated by the lower barriers to entry for electric vehicles compared to internal combustion engine vehicles. As the core competitiveness of internal combustion engines, centered on engines and transmissions, shifts to batteries, electronics, and software, the number of components has decreased, altering the cost structure. The transition to electric vehicles presents an opportunity for these countries to establish their own automotive brands and related industrial ecosystems.
Jung Jun-ha, a senior researcher at the Korea Automotive Research Institute, stated, "Emerging countries can secure price competitiveness by utilizing lower labor costs compared to developed nations, and they can easily develop locally specialized mobility solutions based on a deep understanding of local environments. The competition for electric vehicle pricing will intensify, particularly in emerging markets."
* This article has been translated by AI.
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