BYD and Saudi energy giant Aramco team up to jointly develop new energy vehicle technologies.
On April 21, BYD signed a cooperation agreement with Saudi Aramco Technologies Company (SATC), a wholly-owned subsidiary of Saudi Aramco. The partnership aims to drive innovation in more efficient and eco-friendly technologies, leveraging both companies' world-leading R&D teams to collaborate on new energy vehicle powertrains, low-carbon fuels, and advanced transmission systems. The joint effort seeks to explore diversified pathways for new energy technologies, supporting the energy sector's transition.
As the global oil industry leader, Saudi Aramco has been expanding into low-carbon energy solutions—from hydrogen to carbon capture and synthetic fuels—to maintain competitiveness amid the energy transition. The collaboration with BYD also aligns with Saudi Arabia's "2030 Vision" goal of achieving 30% electric vehicle adoption.
Ali Al-Meshari, Senior Vice President of Saudi Aramco, stated that the company is exploring multiple approaches to optimize internal combustion engine efficiency, including low-carbon fuels and advanced powertrains. He emphasized that energy transition requires "parallel technological pathways," and this partnership aims to develop more sustainable mobility solutions. Saudi Aramco does not intend to abandon traditional energy entirely but seeks to make conventional vehicles cleaner through innovation while gradually embracing electrification. For BYD, entering the premium Middle Eastern market and aligning with Saudi Arabia's "2030 Vision" will further expand its global footprint.
Earlier, Tesla launched operations in Riyadh on April 10, announcing online sales, pop-up stores, and Supercharger deployments in major Saudi cities—a move to counter its 13% global sales decline in Q1 2025 (amid rising competition and CEO Elon Musk's political controversies). As the world's top two EV makers, Tesla and BYD are locked in an intense market rivalry, with BYD's rapid growth and low-cost models pressuring Tesla's dominance in key regions.