Aramco and BYD Join Forces for Clean Mobility

Saudi oil giant Aramco partners with Chinese EV manufacturer BYD to develop new energy vehicle technologies, enhancing vehicle efficiency and environmental performance. This move aligns with Saudi Arabia's goal to increase electric vehicle adoption to 30% in five years despite infrastructure challenges.

Saudi Arabian oil titan Aramco has entered into a joint development agreement with Chinese electric vehicle (EV) manufacturer BYD, aiming to spearhead innovations in new energy vehicle technologies. The agreement, formalized by Saudi Aramco Technologies Company (SATC), is a strategic push toward optimizing vehicle efficiency and improving environmental performance, marking Saudi Arabia's intensified efforts in embracing cleaner mobility solutions.

The landmark deal unfolds as the kingdom accelerates its transition to electric mobility, amidst the backdrop of U.S. EV giant Tesla's recent market entry in Saudi Arabia. Tesla hosted a significant event in Riyadh on April 10, seeking to jumpstart global sales which saw a 13% decline in early 2025 due to escalating competition and political scrutiny surrounding its CEO, Elon Musk.

Amid these dynamics, Aramco is actively exploring methods to enhance transport efficiency, from innovative low-carbon fuels to advanced powertrain concepts, according to Ali A. Al-Meshari, Aramco's Senior VP of Technology Oversight and Coordination. However, the kingdom's ambitious goal to elevate EV adoption from 1% to 30% within five years is hindered by its existing infrastructure, with only 101 EV charging stations available as of 2024, presenting a significant challenge to future expansion.

Meanwhile, Tesla has outlined plans to establish online sales platforms, pop-up stores, and Supercharger stations within major Saudi cities, reflecting its commitment to a coherent expansion strategy. As the race for global EV market dominance intensifies, Tesla and BYD—two of the world's leading EV manufacturers—find themselves continuously challenging each other's market foothold, specifically as BYD's brisk growth and cost-effective models apply mounting pressure on Tesla's standing in crucial regional markets.

(With inputs from agencies.)