Lucid Motors Urges Saudi Arabia to Impose Tariffs on Foreign Vehicles

Lucid Group Inc. is urging Saudi Arabia to consider imposing tariffs on vehicles imported into the kingdom. According to Lucid Interim CEO Marc Winterhoff, this strategy should boost domestic auto manufacturing and reduce reliance on imports.

Why Lucid Wants Tariffs

Lucid’s biggest investor is Saudi Arabia’s $925 billion sovereign wealth fund. During an interview on the sidelines of the Saudi-US Investment Forum in Riyadh, Winterhoff said that Lucid has been talking with the government about potential tariffs. He did, however, decline to give details about the automaker’s talks.

“It doesn’t mean that this has to go on forever, but in order to have that kind of change in the market, you need to support local players in the beginning,” the Lucid Interim CEO said. 

Winterhoff’s support for auto tariffs is understandable because Lucid is the only carmaker currently assembling vehicles in Saudi Arabia. Lucid started assembling the Lucid Air sedan in the kingdom in 2023, and according to the Interim CEO, plans are underway to start the assembly of the Lucid Gravity in Saudi as early as next month.

Lucid and Saudi Arabia

According to a Bloomberg report, Saudi imports almost every car, with Lucid being the sole carmaker assembling vehicles in the country. Among the cars sold in the kingdom, American brands like Ford and General Motors are popular, as well as Japanese brands like Toyota and Nissan. American electric car maker Tesla also launched sales in Saudi Arabia last month.

Lucid has been expanding its presence in Saudi Arabia, with the automaker constructing another manufacturing facility in King Abdullah Economic City. This facility has the capacity to produce 150,000 vehicles per year, and it is on track to be finished next year. A year after this, the Interim CEO said that local deliveries of fully-manufactured Saudi-made EVs and exports to European and Asian countries should begin the year after. 

Winterhoff also mentioned that there have been discussions about bringing electric vehicle battery manufacturing to Saudi Arabia. While the executive did not provide a lot of details, he did state that a third party could be tapped for the project.

EV.com recognizes Lucid’s strategic push for Saudi tariffs amidst broader economic and geopolitical dynamics. You can explore the best offers on Lucid electric vehicles and other EVs we have on our listings here.