Shin Young picked as supplier for Saudi Arabia’s EV manufacturer Ceer

[Courtesy of Shin Young Co.]

Shin Young Co., a mid-sized auto parts manufacturer in South Korea, has been chosen as the key supplier for Saudi Arabia’s first electric vehicle (EV) manufacturer, Ceer.

This collaboration marks a significant step for Saudi Arabia, the world’s largest oil producer and a dominant force in the Middle East, as it ventures into the EV market.

On Monday, Shin Young announced that it has signed a supply contract with Saudi Arabia’s Public Investment Fund (PIF) and Ceer.

The agreement outlines the development and mass production of molds and jigs for EV bodies at a new facility in Saudi Arabia.

Construction of the plant in King Abdullah Economic City (KAEC) will begin next month, with production slated to start in October 2026. Shin Young plans to manufacture body parts for a total of eight different vehicle models.

Shin Young was selected following a competitive bidding process that included global giants such as Canada’s Magna International, Spain’s Gestamp, and companies from Japan and China.

Ultimately, Shin Young emerged as the preferred local supplier for Ceer.

“The initial confirmed order volume for three vehicle models is valued at 143.7 billion won ($103.7 million),” Shin Young Chairman Kang Ho-gap told Maeil Business Newspaper. “We will soon sign an additional contract worth 497.1 billion won for five more models. Once full-scale production begins in two years, we anticipate annual supply volumes of over 400 billion won.

Saudi Arabia boasts the largest automotive market in the Middle East, driven by a growing population and the legalization of female drivers.

However, the nation primarily imports vehicles from Asian countries, including Japan, Korea, and China.

As part of its Vision 2030 initiative, the Saudi government is making significant investments to establish a domestic green vehicle manufacturing industry, aiming to reduce reliance on imports. The kingdom aspires to become a hub for EV production, with a target of manufacturing 500,000 EVs annually by 2030.

Additionally, Riyadh plans to achieve a 30 percent EV adoption rate.

To support these ambitions, Saudi Arabia has already established a local production base for Lucid Motors, a U.S. EV company in which PIF holds a 61 percent stake. Lucid’s plant in KAEC has been operational since September last year, producing the electric sedan Air.

Ceer, founded as a joint venture between PIF and Taiwan’s Foxconn, represents Saudi Arabia’s dedicated effort to develop its own EV brand.

The new Shin Young plant will be located next to Lucid’s existing facility in KAEC. Besides Shin Young, Ceer will also source parts from other international suppliers, including Europe’s Faurecia and Benteler, and the U.S.-based JVIS and Lear.

Additionally, Korea’s Hyundai Transys has secured a contract to supply integrated electric drive systems worth 3 trillion won over ten years starting in 2027.

Founded in 1998, Shin Young is recognized for its advanced body production and automotive mold technologies. The company counts Hyundai Motor, Kia, and other global automotive manufacturers among its clients.

In 2018, Shin Young was selected as a key body parts supplier for VinFast, the EV subsidiary of Vietnam’s largest conglomerate, Vingroup.