Chinese automotive manufacturer Skyworth Auto has entered into a significant collaborative agreement with Saudi Arabia’s KAG Group, a move signalling increased investment from the Saudi side into the Chinese vehicle production space.
Skyworth Auto announced a strategic partnership spanning ten years with KAG Group, a firm under Saudi royal patronage. The initial five-year phase is backed by a robust business plan valued at RMB 10 billion, equivalent to approximately $1.38 billion.
The subsequent five-year collaboration will be contingent upon the success and outcomes of the inaugural phase, as outlined by Skyworth Auto.
Top executives from KAG Group visited Xuzhou in Jiangsu province on May 7-8 to finalize the strategic partnership and sign the accord with Skyworth Auto.
KAG Group’s operational interests span a variety of sectors, including the transportation of vehicles for the Saudi royal family, new energy vehicles (NEVs), and data analytics services. The company is also responsible for maintaining over 85 percent of Saudi municipal underground water infrastructure.
Under the new partnership, Skyworth Auto and KAG Group will collaborate on several fronts, including passenger vehicles, the establishment of supercharging stations, and granting KAG Group exclusive partnership rights in the Saudi market.
Skyworth Auto is actively pursuing expansion into international markets, with plans to establish KD (knocked down) assembly plants in strategic locations, particularly in the Middle East. The upcoming KD plant in Saudi Arabia will be a joint venture with KAG Group, with further agreements expected to unfold progressively.
Founded in June 2000, Skyworth is recognized as one of China’s leading home appliance manufacturers. In April 2021, the company ventured into the automotive industry, with its founder Huang Hongsheng renaming Skywell Auto to Skyworth Auto. The Skyworth ET5, initially known as the Skywell ET5 and launched in October 2020, was rebranded as the Skyworth EV6 in July 2021. The current product lineup offered by Skyworth Auto in China includes the EV6, EV6 II, HT-i, and HT-I II models.