April 2, 2024: US based leading automotive company, Canoo Inc., marked a significant achievement by venturing into Saudi Arabia's electric vehicle (EV) market, which is estimated to exceed a total addressable market value of $30 billion.
According to a press release from Canoo, Jazeera Paints marks the starting point for Canoo's entry into the Saudi Arabian EV market. Recently, Canoo concluded a vehicle sales agreement with Jazeera Paints, a prominent paint manufacturer within the Gulf Cooperation Council (GCC), spanning Kuwait, Bahrain, Qatar, Oman, Saudi Arabia, and the United Arab Emirates. Jazeera Paints also extends its operations across the Middle East and North Africa (MENA) region.
This year, Jazeera Paints intends to procure 20 Canoo EVs and integrate the company's LDV (Lifestyle Delivery Vehicles) 130 and LDV 190 delivery vehicles within its operational lineup. The shipment of 20 LDVs to the paint manufacturer signifies Canoo's inaugural venture into international sales exported to Saudi Arabia.
"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,” stated Tony Aquila, Canoo's Investor, Executive Chairman, and CEO, in the company's press release.
Due to the recent approval of Canoo's Oklahoma City facility as a Foreign Trade Zone (FTZ) by the U.S. Department of Commerce, the cost per unit of Canoo's EVs for Jazeera Paints will be lower. The company anticipates that this FTZ approval will lead to increased profit margins.
The collaboration between Canoo and Jazeera Paints marks the inception of a groundbreaking era in Saudi Arabia’s electric mobility landscape. Both entities foresee this partnership as a catalyst for ongoing innovation and cooperation, fostering a sustainable and technologically progressive future in commercial transportation across the GCC region and beyond.