Saudi Arabia’s sovereign wealth fund has set up a new company that will focus on developing local supply chain capabilities for the automotive and mobility industry in the kingdom.

The Public Investment Fund (PIF) on Tuesday launched the National Automotive and Mobility Investment Company, or Tasaru Mobility Investments, which will drive strategic investments and partnerships with both local and global private sector companies.

Its launch is in line with PIF’s strategy to expand the oil-rich kingdom's automotive capabilities.

PIF has brought in Michael Müller, who has worked at Porsche AG and Volkswagen Group, as the CEO of Tasaru.  

Tasaru's first investment is a joint venture with Zamil Group Real Estate Company, Abdullah Ibrahim Alkhorayef Sons Company and Dar Al-Himmah Projects Company Limited to develop an automotive logistics hub in King Abdullah Economic City (KAEC), which will serve the aftermarket parts industry. 

The fund has made significant investments in the future of mobility, including setting up the kingdom's first national electric vehicle brand, Ceer, in partnership with Foxconn.

The US-based Lucid Motors, in which PIF owns more than 60%, opened its first international manufacturing plant in KAEC with plans to eventually produce up to 155,000 vehicles per year.

(Writing by Brinda Darasha; editing by Seban Scaria)

brinda.darasha@lseg.com