BYD Signs Strategic NEV Tech Deal with Saudi Aramco

BYD (HKG: 1211, OTCMKTS: BYDDY) has formed a partnership with Saudi Arabia's state-owned oil giant Saudi Aramco, following its official entry into the country's auto market last year.

Saudi Aramco and BYDY agreed to explore closer cooperation in new energy vehicle (NEV) technology in a statement issued yesterday.

Saudi Aramco's wholly-owned subsidiary, Saudi Aramco Technology Company (SATC), and BYD signed a joint development agreement aimed at fostering the development of innovative technologies to improve efficiency and environmental performance, the statement said.

The collaboration will leverage the research and development teams of the two companies with a view to achieving breakthroughs in the field of new energy vehicles, the statement said.

Ali A. Al-Meshari, Senior Vice President of Technical Supervision and Coordination at Saudi Aramco, said the partnership aims to support Saudi Aramco's improvement in new energy solutions and builds on Saudi Aramco's extensive R&D experience.

Luo Hongbin, BYD's senior vice president, said he expects Saudi Aramco and BYD's cutting-edge R&D capabilities in the field of new energy vehicles to break the boundaries of geography and mindset, and incubate solutions that combine high-efficiency performance with low-carbon environmental protection.

The Saudi government has an aggressive electrification plan with a goal of achieving 30 per cent penetration of new energy vehicles by 2030.

On 20 February 2024, BYD officially announced its entry into the Saudi Arabian market with the launch of the Han EV, Atto 3, Seal EV, Qin Plus and Song Plus. the Ato 3 is known as the Yuan Plus in China.

BYD's first shop in Saudi Arabia opened on 28 May 2024 in Riyadh, the capital of Saudi Arabia. The shop is located in the heart of the Al Ghader district.

The shop was built by local dealer Al-Futtaim Electric Mobility Company and includes a showroom, discovery centre and service centre.

According to FANS BYD, BYD sold 1,000,804 new-energy vehicles, including plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs), globally in the first quarter, up 59.81 per cent year-on-year.

In overseas markets, BYD sold 206,084 new energy vehicles in the first quarter, up 110.51 per cent year-on-year.