Overview

Saudi Arabia’s Vision 2030 is a bold national strategy aimed at diversifying the economy, reducing dependence on oil, and fostering sustainable growth across multiple sectors. As part of this transformative vision, the Kingdom is prioritising the development of its automotive industry to create a robust, locally-based manufacturing ecosystem. By investing in cutting-edge technology, infrastructure, and strategic partnerships, Saudi Arabia seeks to establish itself as a key player in the global automotive market—driving innovation, job creation, and long-term economic resilience.

The Challenge

The client identified a compelling growth opportunity in the automotive sector in Saudi Arabia, underpinned by increasing domestic demand, evolving consumer preferences, and strong alignment with Vision 2030’s industrial and localisation priorities. The Kingdom’s favourable investment climate, government support for manufacturing, and strategic geographic position further reinforced the attractiveness of the opportunity.

However, despite these favourable market conditions, there was a significant gap in capability and technical know-how needed to convert the opportunity into a viable and scalable automotive venture. The client required expertise to evaluate the feasibility, develop a product-market fit, and design the operational blueprint for manufacturing and supply chain success.

Approach

1. Strategy and Business Plan Development

A comprehensive organisational strategy and business plan were developed to define the long-term direction and commercial roadmap for the automotive venture in Saudi Arabia. This involved:

• Market Opportunity Assessment: Evaluating current and projected demand for vehicles within Saudi Arabia and the broader GCC, including passenger and light commercial segments. Analysis included regulatory incentives, import dependencies, and alignment with Vision 2030 industrial goals.

• Business Model Design: Defining the value proposition, sales and distribution strategy, localisation plans, and the end-to-end service ecosystem. This included consideration of direct-to-consumer channels, dealer networks, and fleet partnerships.

• Financial Planning: Developing financial forecasts, investment requirements, and ROI models across multiple phases of the business. Included analysis of potential funding sources and investment structuring.

• Organisational Structure & Capabilities: Outlining the future organisational design, talent strategy, governance model, and operational roles required to scale the business efficiently and in line with Saudisation policies.

• Strategic Prioritisation: Identifying phased growth priorities, key success factors, and risks. This included establishing a strategic roadmap with milestones for plant development, product roll-out, and market expansion.

This phase established a structured, market-aligned framework to convert the opportunity into a commercially and operationally investable business case.

2. Manufacturing Line Development and Production Facility Feasibility

A technical and financial feasibility study was conducted to assess the requirements and viability of establishing an automotive production facility in Saudi Arabia. This included:

• Production Line Design: Defining the optimal manufacturing configuration, production flow, automation levels, and capacity requirements based on demand forecasts and localisation targets.

• Facility Planning: Identifying and evaluating potential sites based on infrastructure readiness, proximity to logistics, utilities access, and regulatory considerations. Included planning for layout, scalability, and environmental compliance.

• Technology and Vendor Assessment: Engaging with global equipment manufacturers and local suppliers to assess available production components, cost structures, localisation potential, and implementation timelines.

• Capital Expenditure Analysis: Estimating total investment requirements for land, infrastructure, construction, machinery, installation, and commissioning. Included phased investment scheduling aligned to strategic rollout.

This ensured a data-driven and technically sound approach to launching a production facility that meets commercial, regulatory, and operational objectives in the Saudi Arabian market.