Lucid Officially Shifts from Assembly to Full Manufacturing in Saudi Arabia by 2026

LucidUAE LucidKSA LucidBahrain LucidEgypt LucidKuwait LucidOman LucidQatar Lucid Motors is moving steadily toward strengthening its industrial presence in Saudi Arabia, reflecting a strategic shift aligned with the goals of Saudi Vision 2030. The American automaker has confirmed its transition from limited vehicle assembly to full scale manufacturing of electric cars within the Kingdom before the end of 2026, through a new industrial facility located near Jeddah on the Red Sea coast. This development positions Saudi Arabia among the countries producing luxury electric vehicles and gives the local market an industrial dimension that goes beyond import and consumption.

Lucid’s ambitious plans for manufacturing in Saudi Arabia

This shift does not come in isolation from the broader context of industrial investment in the Kingdom. Lucid relies on strong support from the Public Investment Fund, the company’s largest shareholder, which provides financial stability and the ability to plan for long term expansion. For Saudi Arabia, Lucid represents a cornerstone in building an integrated ecosystem for electric vehicle manufacturing that includes production, supply chains, and technologies related to batteries and powertrains.

The new facility, known as AMP-2, represents the second phase of Lucid’s industrial presence in the Kingdom, following earlier assembly operations based on semi knocked down kits. With the move to full manufacturing, operations will expand to include more advanced stages, from body production to final assembly and testing within Saudi Arabia. This transition opens the door to localizing technical expertise, creating high quality jobs, and transferring industrial know how to the local workforce.

Key highlights of the full manufacturing phase in Saudi Arabia

• Producing vehicle bodies locally instead of importing them

• Assembling and testing vehicles within Saudi facilities

• Developing local engineering and technical talent

• Supporting supply chains and related industries

Lucid’s goals in the luxury electric vehicle market

On the commercial front, Lucid continues to face clear challenges in global markets, particularly in the United States, where demand for luxury electric vehicles has softened due to economic pressures and higher financing costs. Despite widespread technical praise for the Lucid AirUAE Lucid AirKSA Lucid AirBahrain Lucid AirEgypt Lucid AirKuwait Lucid AirOman Lucid Air in terms of performance, range, and efficiency, sales have remained below initial expectations. Even so, the company is betting on international expansion and strong Saudi support to recalibrate its trajectory over the coming years.

Saudi Arabia plays a dual role in this strategy, serving as both a promising market for electric vehicles and a regional export hub for neighboring countries. The Saudi government has previously announced plans to purchase thousands of Lucid electric vehicles for government fleets, providing the company with guaranteed demand that supports production stability during its early manufacturing stages in the Kingdom.

From a product perspective, Lucid’s plans extend beyond the Air sedan. The company is currently focusing on the Lucid GravityBahrain Lucid GravityEgypt Lucid GravityKSA Lucid GravityKuwait Lucid GravityOman Lucid GravityQatar Lucid GravityUAE Lucid Gravity, a luxury electric SUV aimed at a broader customer base and expected to become a key driver of future sales growth. Executive statements also point to the development of more affordable models over the medium term, with the goal of expanding Lucid’s customer reach.

Key pillars of Lucid’s upcoming product strategy

• Expanding the lineup with electric SUV models

• Developing relatively more affordable vehicles

• Prioritizing efficiency and long driving range

• Strengthening innovation in electric powertrain systems

With this industrial expansion, Lucid’s ambitions go beyond simply selling cars, underscoring its goal of establishing itself as a global technology developer in the electric mobility sector. Having a fully integrated manufacturing center in Saudi Arabia gives the company greater flexibility to tailor products for different markets while reinforcing the Kingdom’s role as a regional industrial hub for the future of electric vehicles.