Posted on 19 May 2025
South Korean carmaker Hyundai Motor on Friday broke ground for its car factory in Saudi Arabia, targeting production in 2026, Kallanish notes.
The facility will be developed through the Hyundai Motor Manufacturing Middle East (HMMME) joint venture. Saudi sovereign wealth fund PIF, a major shareholder in US EV maker Lucid Motors, holds a 70% stake in the JV. Hyundai owns the remaining 30% share.
The plant will produce 50,000 vehicles per year, both internal combustion engine (ICE) and electric vehicles, by the fourth quarter of 2026. It will be built at the King Salman Automotive Cluster in King Abdullah Economic City (KAEC).
“This groundbreaking is a significant milestone for PIF as it further strengthens the automotive industry in Saudi Arabia,” comments Yazeed A. Alhumied, head of MENA investments at PIF. “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.”
Hyundai is yet to confirm the ICE-EV production ratio and the models to be manufactured in the country.
Hybrid electric vehicles (HEVs) remain Hyundai’s most popular EV powertrain. In Q1, the carmaker sold 137,000 units out of 212,000 EVs. It also sold 64,000 battery electric models and 10,000 plug-in hybrid electric cars in the period.
The company posted a 36.7% on-year increase in its Q1 net profit to KRW 3.38 trillion ($ 2.42 billion). Its sales revenue remained virtually flat at KRW 44.44 trillion.
Source:Kallanish
