Saudi Arabia is making significant strides in the electric vehicle (EV) sector for commercial transportation, advancing at a remarkable pace compared to other nations. Gary Flom, CEO of National Transportation Solutions Co. (NTSC), highlighted the Kingdom’s rapid progress during the EV Auto Show 2024, noting that what Saudi Arabia has achieved in five years took the US 25 years.
As part of its Vision 2030 initiative, Saudi Arabia aims to diversify its economy and reduce oil dependency by developing a comprehensive EV ecosystem. The goal is to have 30% of vehicles in Riyadh electrified by 2030. To achieve this, the government is investing heavily in EV infrastructure, including public charging stations and favorable policies.
The government is also partnering with international entities to build an EV supply chain, focusing on battery raw materials and manufacturing capabilities. Flom acknowledged the challenges in transforming the passenger vehicle market but expressed confidence in the commercial sector’s advancements.
NTSC is spearheading these efforts with its decarbonization roadmap, which assists government and private fleet operators in transitioning from internal combustion engines to electric and hydrogen-powered vehicles. This plan includes measuring fleet carbon baselines, providing necessary charging infrastructure, and using advanced software for vehicle maintenance.
Flom emphasized, Our decarbonization roadmap offers a cost-effective, organized transition from ICE fleets to new energy fleets.
This initiative also provides accredited carbon reduction data, essential for the growing carbon credit trading market in Saudi Arabia.
Strategic partnerships with key players like J&T Express, Saudi Bulk Transport (SBT-SENDDEX), and UPS have been established to promote decarbonization strategies. NTSC’s collaboration with SBT-SENDDEX and Electromin underscores its commitment to sustainable transportation.
Additionally, NTSC has developed DarbConnect, a proprietary fleet management software utilizing Internet of Things technologies. This platform offers real-time GPS tracking, predictive maintenance, and various data services to enhance fleet efficiency and reduce costs. According to Flom, DarbConnect has gained significant traction, signing up over 330 B2B and B2G customers in less than two years and capturing 35% of the commercial units market share.
While the commercial sector progresses rapidly, Flom noted that decarbonizing passenger vehicles is more complex due to variable usage patterns. Unlike commercial fleets with predictable routes and payloads, passenger vehicles are used for diverse purposes, complicating the establishment of a consistent charging infrastructure.
Looking ahead, NTSC aims to become a regional leader in sustainable transportation, with plans to export its expertise, roadmap, and technologies to the broader Middle East and North Africa region. Flom concluded, NTSC will lead in fleet management and sustainable multi-modal mobility, extending our reach beyond Saudi Arabia.