Saudi Arabia’s PIF has raised its stake in the British Luxury Car maker Aston Martin to 20.5% via Lucid Motors, boosting its economic diversification efforts and supporting Aston Martin to produce high-performance electric vehicles from 2025.
This strategic move highlights the PIF’s growing interest in the automotive sector and aligns with its broader economic diversification initiatives.
PIF’s Increased Stake
The PIF raised its stake in Aston Martin by 2.6%, up from the previous shareholding of 17.9%. This move has catapulted the PIF ahead of Geely’s chairman and Chinese entrepreneur, Shufu Li, giving it a more significant share in the luxury car manufacturer.
Despite this, the top shareholder remains Aston Martin’s chair, Lawrence Stroll.
“PIF’s increased stake in Aston Martin, through Lucid Motors, signifies a significant step towards economic diversification and a move away from reliance on fossil-fuel exports.”
Strategic Partnership with Lucid Group
The decision to increase its stake in Aston Martin is closely tied to the PIF’s strategic partnership with the Lucid Group.
In June, Lucid and Aston Martin agreed to form a long-term strategic technology partnership, including integrating Lucid’s powertrain and battery systems in contracts worth ‘in excess’ of $450m.
Lucid’s unit, Atieva, also disclosed a 3.44% stake in Aston Martin, further solidifying the relationship between these entities.
PIF’s Diversification Efforts
The PIF is known for its proactive efforts in steering Saudi Arabia’s diversification efforts, particularly in the automotive industry.
This includes not only establishing Saudi Arabia’s first national EV brand, Ceer, in partnership with Foxconn, and the launch of Tasaru Mobility Investments but also California-based Electric Vehicle (EV) startup Lucid Motors has obtained a license to begin electric vehicle production in Saudi Arabia.
In addition, the PIF has also partnered with the Saudi Electricity Company to establish 5,000 fast EV chargers across the kingdom by 2030, further promoting the adoption of electric vehicles.
Lucid’s Manufacturing Plant in Saudi Arabia
As part of its partnership with Aston Martin, Lucid has started production at its first international manufacturing plant in Saudi Arabia’s King Abdullah Economic City.
The plant is expected to assemble over 155,000 electric vehicles per year, contributing significantly to the growth of the EV industry in the region.
Aston Martin’s Financial Performance
Aston Martin reported a narrowed pre-tax loss of $142.9 million for the third quarter of this year, improving from the loss of $227.2 million in the same period of the previous year.
This positive trend is expected to continue, especially with the backing of PIF and its strategic partnership with Lucid.
Paving the Way
Through its increased stake in Aston Martin and strategic partnerships, Saudi Arabia’s PIF is bolstering the country’s automotive industry and paving the way for a more diversified and sustainable economy.
This move is a testament to the PIF’s commitment to transforming the Saudi economy and reducing its reliance on fossil fuels.