Hyundai launches its first regional manufacturing plant in Saudi: Hyundai Motor Manufacturing Middle East, a joint venture (JV) between the Hyundai Motor Company and the Public Investment Fund (PIF), inaugurated Hyundai’s first Middle Eastern manufacturing plant in the Kingdom, state news agency SPA reports. The plant, located in the King Salman Automotive Cluster within King Abdullah Economic City, is expected to attract USD 500 mn in investments.

The details: The plant will produce both internal combustion engine vehicles and electric vehicles, with production slated to kick off by 4Q 2026. The 500k sqm facility targets an annual output of 50k vehicles, Al Arabiya report, citing PIF’s Director of the Automotive and Mobility Sector Mohammed Al Sheiha.

The plant is projected to contribute some USD 5 bn to Saudi Arabia’s GDP by 2045, Al Arabiya said.

REMEMBER- The JV agreement to establish the highly automated plant was inked in October 2023, with the PIF holding a 70% stake, while Hyundai owns the remaining 30% and contributing technical and commercial expertise. The JV signed a SAR 175.7 mn ground lease agreement in decembet with Emaar, The Economic City to set up a vehicles and auto parts manufacturing and assembly plant in the Special Economic Zone of King Abdullah Economic City’s Industrial Valley.

The kingdom is doubling down on its automotive ambitions: PIF-backed Lucid has recently opened its first international facility in King Abdullah Economic City, with plans to produce up to 155k EVs annually. The PIF has also launched local EV maker Ceer in partnership with Taiwan’s Foxconn. In late 2023, the fund signed a USD 550 mn JV with Italian tire manufacturer Pirelli to build a Saudi plant with a capacity of 3.5 mn tires per year.

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