California electric vehicle startup Canoo has signed an exclusive agreement with GCC Olayan (general contracting company) to become the exclusive distributor of its electric vehicles in Saudi Arabia. The first phase of the agreement will focus on the sale, distribution, service maintenance and repair of Canoo vehicles. In addition to the sales partnership, Canoo and GCC Olayan also announced their intention to form a joint venture to launch a digital vehicle ecosystem for service maintenance repair, local assembly and eventually manufacturing in Saudi Arabia.
“It has been a privilege to work with the Olayan Group of companies over the years. Our agreement to bring Canoo’s award-winning vehicles to the region is based on our shared commitment to customer service. The Olayan Group is a global business leader with partnerships with some of the world’s With decades of experience in establishing distribution partnerships with leading brands, they are a reliable partner in support of electric vehicles in the region,” said Tony Aquila, Canoo Chairman and CEO.
“We recognize that there is a growing demand for sustainable transport solutions in Saudi Arabia, partly due to the Kingdom’s launch of the Saudi Green Initiative and its commitment to achieve net zero emissions by 2060. With this in mind, we are delighted to sign the product Uwaidh K. Al-Harethi, CEO of Olayan, said: “We have entered into a service distribution agreement with Canoo and are proud to be the exclusive distributor of its electric vehicles in our market”, adding: “The new partnership will Combining GCC Olayan’s more than 75 years of experience, Canoo’s innovative electric vehicle technology will operate in the automotive and related industries to meet this demand in the market and contribute to the global efforts to tackle carbon emissions as well as the sustainable development goals of Saudi Vision 2030 contribute. “
Domestically, Canoo is still ramping up production of cars and battery modules after a tough 2022. While some deals, such as a production deal with Dutch company VDL, fell through, the startup still has big orders from Walmart, Zeeba and Kingbee. As a result, the company’s future looks stable, although ramping up production will present significant financial challenges.
Saudi Arabia is also a fast-growing nascent electric vehicle market, with start-ups such as Avass Group, Lucid and Foxconn (not a newcomer, but they dabble in electric vehicles) building vehicle production facilities in the country, while Siemens is working on to expand the charging infrastructure in the country.
