Stellantis has revealed plans to expand its product line in the Saudi Arabian market by introducing smart vehicles and light commercial vehicles. Samir Cherfan, Stellantis' Chief Operating Officer for the Middle East and Africa, stated that the company's Dare Forward 2030 initiative aims to transform the automaker into a transportation technology company.
Cherfan mentioned, “Our approach in Saudi Arabia is multifaceted, involving increasing market share through expansion across brands and sectors.” He added, “The driving force behind this will be the introduction and expansion of models, including smart vehicles and light commercial vehicles under the Fiat, Citroën, and Peugeot brands.”
He further stated, “Additionally, Jeep is preparing for growth by reaching customers in new market sectors, while RAM will strengthen its position in the full-size pickup truck sector.” Cherfan indicated that Stellantis' strategy in Saudi Arabia aligns with the goals of Saudi Vision 2030. He emphasized that the company is committed to supporting the Kingdom's economic diversification efforts and ongoing technological advancement. He concluded, “By expanding our product line, improving efficiency, and adopting new sustainable technologies, we aim not only to dominate the market but also to support economic diversification and technological progress in Saudi Arabia.”
In discussing Stellantis' reintroduction of the Citroën brand in 2022, Cherfan noted it was to meet the increasing demand for electric vehicles in the Saudi market, particularly as young consumers prioritize sustainability. He mentioned, “In Saudi Arabia, Citroën offers a diverse range of vehicles that cater to the needs of young buyers, especially in urban centers like Riyadh and Jeddah, including the growing number of female drivers.”
He continued, “This younger demographic typically looks for more sustainable, compact, and smarter models. Since electric vehicles produce zero emissions and zero noise, this aligns with the goals of Vision 2030 to improve quality of life and reduce the carbon footprint in the Kingdom.”
According to Cherfan, Saudi Arabia's economic diversification efforts aimed at reducing reliance on oil are also reshaping the automotive market in the country. He added that the Saudi sovereign wealth fund's strategic investments across various sectors also assist companies like Stellantis in investing in the Kingdom.
He noted, “As the Kingdom looks towards a post-oil economy and becomes more competitive internationally, this shift also affects the automotive market.” Cherfan stated, “With the Public Investment Fund supporting the Kingdom's economic growth through investments in various sectors, this opens doors for companies like Stellantis to invest and grow their business.”
He added, “At Stellantis, our goal is to increase our sales in Saudi Arabia, and we believe the Kingdom is key to our plan to source 90% of the vehicles and parts needed in the Middle East and Africa from within the region.”
Cherfan further stated that the company plans to introduce new electric vehicle models in Saudi Arabia soon, aiming to capture 30% of this market by the end of this decade.
He said, “When it comes to electric, we are working with our Saudi partners to integrate electric vehicle models or create dedicated electric vehicle brands within our product portfolio. Our goal is to achieve a 30% share of electric vehicles by 2030, as outlined in our Dare Forward strategy.”
According to Cherfan, the automotive industry is a source of job opportunities and is expected to grow at a double-digit rate until 2030 in Saudi Arabia as the Kingdom seeks to ensure clean and independent mobility. He noted that the company currently employs 12,000 people in the Middle East and Africa, with only 20 expatriates.
He stated, “In the Kingdom, through Stellantis and our distributor partners, we have thousands of people working in various departments and under multiple brands. We expect to continue to increase this number as our brands grow their market share.” He added that Stellantis aims to position itself as the most localized player in the region.
The company aims to achieve 70% regional production autonomy by 2030, which represents a significant leap from its current level of 25%. The COO indicated that Stellantis plans to sell one million vehicles in the region by 2030, 35% of which will be electric.
Cherfan also stated that Stellantis' strategy includes close collaboration with local companies, government bodies, and other stakeholders. He emphasized that leveraging partnerships with local companies is essential for understanding the market in Saudi Arabia, while cooperation with government entities is crucial for navigating regulatory frameworks.
He concluded, “By partnering with government entities, we can ensure that our activities align with Saudi Arabia's vision for economic diversification, sustainability, and innovation.”
