Saudi welcomes Indian EV company- Pravaig to establish manufacturing plant

Pravaig, the leading original equipment manufacturer of electric vehicles (EVs) in India, has inked an MoU to look at setting up a left-hand drive EV manufacturing plant in Saudi Arabia with an annual output of up to one million vehicles in order to address demand in the US, Europe, and the Gulf.

In a statement, Pravaig said that on the final day of the G20 YEA India Summit 2023, it signed a memorandum of understanding (MoU) with Saudi India Venture Studio. CEO of Pravaig Dynamics Siddhartha Bagri and CEO of Saudi India Venture Studio Mansour Alsanooni inked the agreement.

The Bengaluru-based electric vehicle firm Pravaig debuted two electric SUV models last year. Manufacturing batteries is another area of expertise. A Saudi government-backed investment firm called Saudi India Venture Studio seeks to advance and transform the country's electric vehicle market.

According to the statement, the MoU allows for the exploration of co-development, supply, and service for special-purpose vehicles, including electric vehicles (EVs), AI-driven solutions, sophisticated batteries, and energy storage solutions.

Praviag being a Luxury car manufacturer has seemed to find a suitable market for their usual selling point (USP). The middle east land is home to the potential customers of chauffeur-driven luxurious vehicles which Pravaig engineers.

The establishment of a strong left-hand drive production base of up to 1 million units of automobiles, successfully meeting the demands of the GCC, Europe, and the USA, was listed as one of the partnership's main goals in the statement.

"We have the potential to create unparalleled economic opportunities of USD 31 billion+ throughout global markets through integrating Pravaig's expertise with the Kingdom of Saudi Arabia's invaluable support and strategic guidance." In accordance with the agreement, Pravaig and Saudi India Venture Studio will complement one another's skills, resources, and competencies.

According to Alsanooni, “This MoU is in accordance with Saudi Arabia's Vision 2030, which is being led by Crown Prince Mohammed Bin Salman and intends to develop strategic investment ties between the business sector and India. The vision, which is causing a dramatic socioeconomic transformation, is propelling the country and its people towards unrivalled growth.”

“Under the watchful guidance of the Ministry of Investment, Saudi India Venture Studio joins together with Invest Saudi and creates a streamlined route into the MENA region. A symphony of commercial ambitions and investment opportunities is sparked by the cooperation with Pravaig, advancing the Kingdom's technological development in the EV, battery, and AI sectors. We go on a creative journey together that will influence the Kingdom's authority in future worlds, he added. According to Bagri, the purpose of the two coming together is to foster prosperity for everyone.

However, netizens have shown some mixed reactions to the update. As the Indian-based startup receives new heights worldwide, some stand to question the necessity of the business to grow in the middle east sphere of the market. Despite the company’s background to provide war vehicles to the Indian forces, the establishment of a new plant in Saudi stands questionable on the Indian EV market.