By YANG Shihan
On October 24, Pony.ai, a company focused on autonomous driving, confirmed that they had secured US$100 million (730 million yuan) from the investment arm of Saudi Arabia’s City of Future (Neom) project. In exchange, Pony.ai will run a robotaxi program and establish factories and an R&D center for autonomous driving systems in Saudi Arabia.
China’s EV companies are popular targets for Middle East investment firms. Companies like Nio, Qiantu Auto, and Hi Phi have established partnerships with firms in the region. For a region heavily reliant on oil production, collaborating with well-established EV firms offers a quick solution for transformation.
For EV companies facing fierce competition in China, the Middle East provides ample room for them to thrive. With the help of investors from the Middle East, they can tap into this market and increase their profits. For example, BYD's Atto 3, known as Yuan Plus in China, is sold at 149,900 AED (US$40,000, 300,000 yuan) in the UAE, nearly double the price in China.
Moreover, import duty on entire vehicles in regions like the UAE and Saudi Arabia is only 5 percent. Israel has lowered its import duty on zero-emission vehicles to 12 percent. Over 20 Chinese companies, including Geely, BYD, and Cherry, are expanding their presence there.
