A South Korean automotive company announced plans on Tuesday to establish a production plant in Saudi Arabia, bolstering the kingdom’s automotive plans as the Gulf pivots east.
Tata Daewoo Commercial Vehicles signed a memorandum of understanding in Riyadh with construction equipment provider Saudi Diesel Equipment and Saudi steel fabricator Perfect Arabia Factory. The two Saudi firms will locally assemble Tata Daewoo trucks, the latter said in a press release.
Tata Daewoo first entered the Saudi market in 2014 after signing a sales contract with Saudi Diesel Equipment to market the former's trucks. The company exported 670 large trucks to the kingdom and recorded $35.5 million in sales in 2023. The South Korean firm aims to boost its exports to 1,000 trucks per year, according to the release.
Why it matters: The announcement of the project comes as Saudi Arabia seeks to boost its domestic automobile industry. The kingdom currently imports the majority of its vehicles, bringing in some $13.2 billion worth of cars in 2022, according to the Observatory of Economic Complexity. Exports, on the other hand, stood at just $19 million that same year.
