Jeddah: Hyundai Motor Co. announced it has commenced construction on its inaugural production plant in the Middle East, located in Saudi Arabia. This development marks a significant step in the company’s global expansion strategy.
According to Yonhap News Agency, the groundbreaking ceremony for Hyundai Motor Manufacturing Middle East (HMMME) took place at the King Salman Automotive Cluster in King Abdullah Economic City (KAEC), Saudi Arabia. The venture is a collaboration between Hyundai and Saudi Arabia’s Public Investment Fund (PIF), with a 30-70 ownership structure. The plant is expected to begin production in the fourth quarter of 2026, with an annual capacity of 50,000 units, encompassing both electric vehicles and internal combustion models.
The establishment of this facility aligns with Saudi Arabia’s vision to cultivate a domestic automotive industry, positioning the King Salman Automotive Cluster as a central hub for automotive manufacturing in the country. The ceremony was attended by over 200 dignitaries and officials, including Saudi Arabia’s industry minister Bandar Alkhorayef and Hyundai Motor Group Vice Chairman Chang Jae-hoon.
Chang emphasized the groundbreaking as the commencement of a transformative era for Hyundai Motor and Saudi Arabia, aligning with the country’s Vision 2030 initiative aimed at nurturing local talent in mobility technology. Yazeed Alhumied, deputy governor of PIF, highlighted the joint venture’s role in building local capabilities and creating skilled jobs within Saudi Arabia’s automotive sector.
Hyundai Motor projects that the new plant will create thousands of jobs, facilitating knowledge transfer and skill development within Saudi Arabia. The company believes that localizing vehicle production will enhance the growth of the nation’s automotive and mobility ecosystem, heralding a new industrial future.
Saudi Arabia’s Vision 2030 strategy actively supports the development of its automotive industry as part of efforts to diversify its economy and reduce reliance on oil. Hyundai is also working to establish a hydrogen mobility ecosystem in Saudi Arabia, in collaboration with the Korea Automotive Technology Institute, Air Products Qudra, and the Saudi Public Transport Company. This partnership aims to advance hydrogen mobility through initiatives like hydrogen electric buses and government-supported research programs.