Saudi-Korean Partnership to Open First Integrated Hyundai Motor Plant in Kingdom

A strategic partnership between Saudi Arabia’s Public Investment Fund (PIF) and Hyundai Motor Company has resulted in the groundbreaking of Hyundai’s first integrated automotive manufacturing plant in the Kingdom, located in the King Salman Automotive Cluster, reflecting Saudi Arabia's efforts to achieve Vision 2030 goals, diversify its economy, and localize advanced industries.

 Production is set to begin in late 2026, with an annual capacity of up to 50,000 vehicles, including both electric and combustion models.

 The project, led by the PIF, advances national goals by boosting local manufacturing, transferring expertise, and strengthening supply chains, aimed at establishing the Kingdom as a global automotive hub and supporting a diversified, sustainable economy.

 Minister of Industry and Mineral Resources Bandar Alkhorayef led the partnership with Hyundai Motor Group and visited the company’s main facility in South Korea in December 2023 to discuss implementation plans for the automated plant in the Kingdom.

 The King Salman Automotive Cluster in King Abdullah Economic City plays a key role in the National Industrial Strategy, aiming to attract three to four major automakers that will produce over 300,000 vehicles annually. Hyundai’s new plant will join Lucid Motors and Ceer in advancing this goal.

 The PIF remains instrumental in driving the Kingdom’s automotive sector through strategic investments that boost growth, create jobs, and support industrial transformation.

 Hyundai’s investment shows confidence in Saudi Arabia as a regional manufacturing hub and will boost service in the region while supporting the growth of the Kingdom’s automotive sector.