Canoo Enters $30 Billion Saudi Arabia Market with Commercial EV Sales

Canoo Inc., a frontrunner in the advanced mobility sector, today marked a significant milestone by entering into a vehicle sales agreement with Jazeera Paints, a leading paint manufacturer across the Gulf Cooperation Council (GCC) and Middle East and North Africa (MENA) regions. Under this agreement, Jazeera Paints has committed to integrating 20 of Canoo’s electric vehicles (EVs) into its operational fleet by 2024. Additionally, there’s a provision for Jazeera Paints to potentially augment their fleet with up to 180 more of Canoo’s EVs, showcasing robust confidence in the utility and performance of these vehicles. This strategic partnership not only opens up avenues for Canoo in the burgeoning Kingdom of Saudi Arabia (KSA) EV market—which boasts a total addressable market (TAM) exceeding $30 billion—but also signifies a concerted effort within the GCC to push forward sustainable mobility solutions. This collaboration underscores the growing emphasis on environmental sustainability and innovation in the commercial sector.

These vehicles represent one of Canoo’s inaugural international sales expeditions, directly exported to Saudi Arabia by leveraging the recently approved Foreign Trade Zone (FTZ). This strategic move, as detailed in Canoo’s press release dated March 18, 2024, is poised to decrease the unit cost and enhance profit margins significantly. The deployment of electric commercial delivery vehicles in the Kingdom is not merely a business expansion but also positions Canoo as a pioneering force in the Saudi market. Coupled with the first mover advantage, this venture bestows Canoo a competitive edge in the broader Gulf Cooperation Council (GCC) region. This highlights Canoo’s strategic approach toward infiltrating new markets by capitalizing on innovative logistics and trade policies to streamline operations and maximize profitability.

Jazeera Paints’ decision to incorporate Canoo’s LDV 130 and LDV 190 electric delivery vehicles into its fleet aligns seamlessly with its broader environmental objectives, particularly in support of the Saudi Green Initiative. This strategic move not only enhances Jazeera Paints’ operational efficiency but also positions the company as a frontrunner in adopting sustainable business practices within the Kingdom of Saudi Arabia and the wider Middle East and North Africa (MENA) region. By transitioning to electric vehicles (EVs), Jazeera Paints contributes significantly to the Kingdom’s ambitious goal that 30 percent of new car sales are electric by 2030, underscoring its commitment to reducing carbon emissions and promoting environmental sustainability. This initiative is a testament to Jazeera Paints’ dedication to pioneering sustainable solutions in the commercial sector while also leveraging the advanced technology and reliability of Canoo’s electric delivery vehicles to bolster its logistical operations.

“This partnership is a key milestone in our targeted geographic expansion to the KSA region with a large and important fleet that is focused on deploying sustainable technologies across the fast-growing industry it serves. I have had the pleasure of working closely with Abdullah bin Saud Al-Romaih, the CEO of Jazeera Paints, on how we can partner together to deliver on the Crown Prince’s environmental initiatives for the Kingdom’s Vision 2030,” said Tony Aquila, Investor, Executive Chairman, and CEO of Canoo.

Canoo’s delivery vehicles stand out not just for their zero-emission footprint but also for their innovative design and integration capabilities. Built on a proprietary multi-purpose platform, these vehicles feature advanced steer-by-wire technology, which eliminates the physical connection between the steering wheel and the wheels. This technology not only allows for a more spacious and customizable interior but also contributes to a more agile and responsive driving experience. Furthermore, Canoo’s comprehensive software stack facilitates seamless end-to-end integration into Jazeera Paints’ existing workflow.

This integration is crucial for optimizing logistical operations and improving overall efficiency. Additionally, Canoo’s vehicles come equipped with custom-built shelving solutions. This thoughtful design feature negates the need for third-party upfitting, a common requirement in standard delivery vehicles. The result is a significant reduction in downtime for operations, enabling Jazeera Paints to maintain continuous and efficient delivery services. This blend of cutting-edge technology and thoughtful design underscores Canoo’s commitment to providing sustainable and innovative transport solutions that cater to the specific needs of businesses like Jazeera Paints.

“I am delighted to announce this agreement to purchase electric vehicles from Canoo, which symbolizes Jazeera Paints’ commitment to sustainability and eco-friendly technologies and materials,” said the CEO of Jazeera Paints, Abdullah bin Saud Al-Romaih. “Tony and I have been working on this partnership for over a year and are excited about the future possibilities of ways we can work together to achieve our sustainability goals.”

Looking ahead, this partnership between Canoo and Jazeera Paints represents the beginning of a transformative journey in the realm of electric mobility. Both companies anticipate this alliance will catalyze further innovation and collaboration, paving the way for a more sustainable and technologically advanced future in commercial transportation within the GCC and beyond. The alignment of Canoo’s forward-thinking technology solutions with Jazeera Paints’ commitment to sustainability heralds a new era of environmental stewardship in the commercial sector. This collaboration is not just about adopting electric vehicles; it’s about setting new standards for the industry and inspiring other companies to follow suit. Through this partnership, both Canoo and Jazeera Paints are poised to lead by example, demonstrating how technological innovation and a commitment to sustainability can go hand in hand to drive positive change on a global scale.

Saudi Arabia Invests Heavily in Sustainability

According to an announcement by the Kingdom of Saudi Arabia, it is heavily investing in sustainability, including electric vehicles. The Kingdom’s website stated:

“Sustainability is a key part of Saudi Arabia’s Vision 2030 as the Kingdom strives towards a Net Zero future by 2060. With a commitment to clean energy and sustainability, the Kingdom is leading the charge in tackling energy and climate challenges with innovative solutions such as the Circular Carbon Economy (CCE) and an increasingly diverse energy mix, in which 50% of energy will come from renewable sources by 2030.”

Saudi Arabia Wisely Moving Away from Big Oil Investments

With Big Oil multinationals such as Shell making significant investments in EV charging, Saudi Arabia knows that it’s massive income from oil exports is coming to a close, and that it needs to invest in the fast-growing EV and renewable energy industries, to ensure ongoing profitability.

A Regulatory Oasis for Renewable Energy

Saudi Arabia’s regulatory framework for renewable energy stands out as one of the most forward-thinking in the world. Crafted to draw in foreign investments, it prioritizes creating a stable and predictable landscape for investors. The foundation of an independent authority to supervise the renewable energy sector injects a significant level of credibility and trust. By doing so, it guarantees that the sector’s expansion is steered in an efficient and transparent manner. This regulatory atmosphere is pivotal in nurturing innovation and appealing to major global energy players, positioning the Kingdom as a vibrant hub for renewable energy development.