Hyundai Motor to Build Vehicle Assembly Plant in Saudi Arabia... Securing Middle East Production Hub

Saudi Economic City to Establish Assembly Plant with Annual Capacity of 50,000 Units
Over $500 Million Investment... Mass Production Targeted for 2026
Producing Various Models Including Electric Vehicles
To Serve as Production Hub for Middle East and North Africa
Plan to Enhance Productivity with Advanced Automated Processes

Hyundai Motor Company is building a joint automobile assembly plant in Saudi Arabia. The plant, capable of producing 50,000 units annually from 2026, will serve as a production base for the Middle East region. Hyundai Motor Group has set a goal to sell 550,000 units annually in the Middle East market around 2030, including Saudi Arabia, the largest market in the region.

On the 22nd (local time), Hyundai Motor announced that it signed a joint investment agreement with the Saudi Arabian Public Investment Fund (PIF) to establish a Complete Knock Down (CKD) plant at the Fairmont Hotel in Riyadh, Saudi Arabia.

The signing ceremony, held at the Korea-Saudi Investment Forum, was attended by Hyundai Motor Chairman Chung Euisun, Hyundai Motor President Jang Jae-hoon, Yasir Othman Al-Rumayyan, Governor of the Saudi PIF, and Yasir Al-Humaid, Vice Governor of PIF, among others.

According to the agreement, Hyundai Motor and PIF will build a CKD joint plant in King Abdullah Economic City (KAEC), Saudi Arabia, capable of producing 50,000 units annually. Hyundai Motor plans to start construction in the first half of 2024 and aims to begin mass production in the first half of 2026.

Hyundai Motor and PIF plan to jointly invest over $500 million (approximately 675.5 billion KRW) in the construction of the joint plant. Hyundai Motor will hold a 30% stake, while PIF will hold 70% ownership of the plant.

King Abdullah Economic City (KAEC), where the plant will be located, is a planned city in the western region of Saudi Arabia. It is about 100 km from Jeddah, Saudi Arabia's second-largest city and home to its largest trading port. Recently, it has emerged as a hub for the Middle East automotive industry, with increasing investments from the electric vehicle sector and the settlement of automotive parts companies.

Recently, Saudi Arabia has been pursuing the national development project "Saudi Vision 2030," aiming to reduce dependence on the oil industry and foster diverse growth engines. As part of this project, the development of the automotive industry is being actively promoted.

Hyundai Motor plans to utilize this joint plant as a production base for the Middle East and North Africa region. The joint plant will be built to produce various types of vehicles, including electric vehicles and internal combustion engine vehicles. It plans to enhance productivity by applying highly automated processes and region-customized facilities.

Earlier, Hyundai Motor Group announced a sales target of 550,000 units annually in the Middle East market by 2030. The Middle East automotive market is rapidly growing, centered on Saudi Arabia. Due to population growth, economic development, and the legalization of women driving, the demand for automobiles in the Middle East market is expected to reach 3 million units around 2030.

Hyundai Motor President Jang Jae-hoon said, "This joint plant will lead to a breakthrough in electric vehicle production technology and contribute to the establishment of a sustainable eco-friendly automotive industry in the region." He added, "We expect the cooperation between Hyundai Motor and PIF on electric vehicle technology to create innovation and environmentally friendly opportunities."

Yasir Al-Humaid, Vice Governor of PIF, said, "Cooperation with Hyundai Motor will be an important milestone in fostering Saudi Arabia's automotive ecosystem." He added, "Our joint investment will be a significant opportunity to broadly expand the value chain of Saudi Arabia's mobility industry."