Hyundai Motor Manufacturing Middle East Breaks Ground on New Plant Promoting Future Mobility

Milestone in Automotive Industry

Hyundai Motor Manufacturing Middle East (HMMME), a collaboration between the Public Investment Fund (PIF) and Hyundai Motor Company, recently celebrated its groundbreaking ceremony at the King Salman Automotive Cluster located in King Abdullah Economic City (KAEC). This pivotal event signifies an important advancement in the automotive sector within the Kingdom of Saudi Arabia.

A Booming Future in Manufacturing

This newly established manufacturing facility is the first of its kind for Hyundai in the Middle East, featuring a range of both internal combustion engine (ICE) and electric vehicles (EV). With an ambitious target to produce 50,000 vehicles annually, HMMME aims to fulfill the growing automotive needs of Saudi Arabia. The site’s inaugural vehicle is slated to roll off the production line by the end of 2026.

PIF holds a 70% stake in this joint venture, while Hyundai retains the remaining 30%. This collaboration is poised not only to meet local demand but also to fortify Saudi Arabia’s position in the global automotive landscape.

Investing in Local Talent and Technology

At the groundbreaking ceremony, notable figures included Yazeed A. Alhumied, Deputy Governor of PIF, and Jaehoon Chang, Vice Chair of Hyundai Motor Group. Alhumied expressed that this event underscores PIF's continuous effort to strengthen the automotive sector, highlighting the importance of local capability development and job creation. “Through partnerships, we are committed to enhancing the automotive ecosystem in Saudi Arabia,” he stated.

Chang remarked that this groundbreaking signifies the inception of a new chapter in both the Kingdom and Hyundai's journey, contributing to the region’s technological advancement and workforce development as envisioned in Saudi Vision 2030. He emphasized the collaborative aim to elevate the skills and capabilities of local talents, reflecting a commitment to innovation in mobility.

Enhancing the Local Economy

CEO of HMMME, Wongyun Park, noted that this facility will act as a catalyst for industrial evolution in the region, fostering growth and excellence in manufacturing. With thousands of new jobs expected, the plant will not only boost employment but also facilitate knowledge transfer and skill enhancement among the local workforce. The design of the facility aims to significantly localize Hyundai's vehicle production, further stimulating the Saudi automotive and mobility market.

This project is part of a larger range of initiatives by PIF to position Saudi Arabia as a key player in the global automotive industry. These efforts are designed to bolster local manufacturing capabilities, improve infrastructure, and optimize supply chains to support a sustainable future.

In summary, the establishment of Hyundai Motor Manufacturing Middle East marks a significant leap forward for the Kingdom’s automotive sector, promising innovation, job creation, and transformative developments that align with the national vision for economic diversification and growth. As this new chapter unfolds, the impacts of HMMME's contributions to the automotive landscape will be keenly observed in the coming years, laying a solid foundation for future mobility solutions in Saudi Arabia.