Hyundai to build EV factory in Saudi Arabia
Both sides announced their plans for the factory in 2023 and founded their joint venture HMMME in the same year. The main purpose of the joint venture is to build and operate a car factory in King Abdullah Economic City. The production facility is scheduled to go online in the fourth quarter of 2026 and will have an annual capacity of 50,000 vehicles, including both electric cars and combustion-powered vehicles.
HMMME is primarily in Saudi hands: the PIF holds a 70 per cent stake in the joint venture, with Hyundai holding the remaining 30 per cent. The plant will be Hyundai’s first production facility in the Middle East. When announcing the plans for 2023, the South Koreans estimated the total investment at over 500 million dollars, currently equivalent to more than 446 million euros.
It is not clear from the current announcement which electric models are to be manufactured in Saudi Arabia. The press release only states that the localisation of production should contribute to “establishing Saudi Arabia as a global automotive player.”
Yazeed A. Alhumied, Deputy Governor and Head of MENA Investments at PIF, commented: “This groundbreaking is a significant milestone for PIF as it further strengthens the automotive industry in Saudi Arabia. PIF will continue to enable and accelerate the growth of Saudi Arabia’s automotive ecosystem through partnerships. This joint venture underscores PIF’s commitment to build local capabilities, attract cutting-edge technology, and create highly skilled jobs in Saudi Arabia’s automotive and mobility sector.”
Wongyun Park, Vice President and CEO of Hyundai Motor Manufacturing Middle East, emphasised that HMMME is driving change and paving the way for a new industrial future in the region. “The facility will become a platform for growth and industrial excellence in the heart of the Kingdom.”
The Hyundai collaboration is one of a series of PIF initiatives to bring the automotive industry to Saudi Arabia. Lucid Motors, for example, has also been operating an electric car factory in Saudi Arabia since September 2023. The plant, which is also located in King Abdullah Economic City, has been producing the Lucid Air in a semi-knocked-down (SKD) assembly line ever since. The vehicle kits are manufactured at Lucid’s main plant in Casa Grande, Arizona, and then shipped for final assembly.
In the case of Hyundai, there is no statement on SKD or CKD production. There is only talk of “highly automated vehicle production.”
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