Hyundai's ambitious expansion: New car and EV factory in Saudi Arabia

Delhi : Hyundai has announced that it will have a 30% ownership in the joint venture, with PIF holding the remaining 70%. Once completed and operational, the planned facility will be able to produce up to 50,000 units per year. The plant's groundbreaking is scheduled for 2024, with production beginning in 2026. This will also be the Korean company's first manufacturing site in West Asia.

According to a press release released by Hyundai, the business is well positioned to serve the Saudi market and markets throughout the region from the site here. For Saudi Arabia, there is the clear benefit of employment generation and information transfer. A country long recognized for its vast oil reserves is currently moving to cleaner fuel sources. 

Partnering with Hyundai is another key milestone for PIF in successfully facilitating and accelerating the expansion of Saudi Arabia's automotive ecosystem - one of PIF's 13 priority sectors, according to Yazeed A. Al-Humied, PIF's Deputy Governor and Head of MENA Investments. Our investment in car manufacturing with Hyundai Motor Company is a watershed moment, complementing our current investments in Lucid and Ceer Motors and broadening Saudi Arabia's automotive and mobility value chain.

Lucid's arrival into Saudi Arabia is also notable because the American EV manufacturer launched the Kingdom's first car manufacturing facility last month. This plant has now begun semi-knocked-down (SKD) assembly and has an annual capacity of 5,000 units.

Saudi Arabia has expressed its intention to produce 300,000 EVs per year by 2030, and sees such vehicles as a realistic option to advance its automotive industry. Manufacturing enterprises here would service not only local need, but may also function as a base for exports.