Written by Cláudio Afonso | LinkedIn | X
Sales of Chinese cars in the Middle East are expected to reach between 500,000 and 600,000 units this year, according to Xie Zichen, CEO of Chinese tech startup Renwu Technology.
In an interview with Shanghai-based media outlet Yicai, Xie noted that Middle Eastern investors require Chinese companies to commit to long-term strategies and possess capabilities for local research, development, and manufacturing.
Chinese new energy vehicles (NEVs) are becoming increasingly popular in the region, with models from BYD, Geely, Great Wall Motor, and Hongqi frequently seen on the roads.
Nio, XPeng, and Zeekr have recently joined the list and officially launched in the Middle East.
PIF, Saudi Arabia’s Public Investment Fund, has announced last week it is increasing its investment in the California-based EV maker Lucid Motors. The manufacturer is currently expanding its facility in the country aiming to become able to produce 150,000 EVs per year there.
The fund’s stake in the company stands at about 60%.
Earlier this week, XPeng launched its G6 and G9 SUVs in the UAE, partnering with local dealer Ali & Sons Holding LLC in Abu Dhabi.
The Guangzhou-headquartered brand plans to open a second store in Abu Dhabi next year, adding to its current location in Dubai. Following the launch of the G6 and G9 this week, the automaker is planning to make its MPV model XPeng X9 available in the country at a later stage.
Zeekr, the premium electric vehicle (EV) brand of Geely, has also recently entered several countries in the Middle East.
In late 2023, Zeekr reached agreements with AW Rostamani Holdings in the UAE, Wallan Trading Company in Saudi Arabia, Blue Lake Motors in Qatar, and Y.K. Almoayyed & Sons in Bahrain.
Nio officially launched in the Middle East and North Africa (MENA) region on Tuesday. At the event, Nio presented and provided test drives of three of its models such as the SUV Nio EL8, the Coupe SUV EC6 and the ET5 sedan.
At a later stage, the Nio Group will also launch the models of its sub-brands Onvo and Firefly in the Middle East region.
Earlier this month, Nio announced a joint venture with Abu Dhabi-based CYVN Holdings to form Nio MENA while teasing that it plans to establish a manufacturing plant in the Middle East and North Africa (MENA) region.
In December 2023, Nio secured a $2.2 billion investment from CYVN, increasing the Abu Dhabi firm’s ownership to 20.1% of Nio’s total issued and outstanding shares. This followed a $738.5 million investment made by CYVN in July 2023.
Written by Cláudio Afonso | LinkedIn | X
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