Auto
Hyundai Forges Joint Venture Agreement with Saudi Wealth Fund for Car Manufacturing plant
Highlights
- Hyundai Motor Group and Saudi Arabia’s Public Investment Fund (PIF) join forces for a groundbreaking car manufacturing plant in Saudi Arabia.
- Plant’s impressive annual capacity: 50,000 vehicles (electric and gas models) – first South Korean auto production venture in the Middle East.
- Ownership structure: PIF holds 70%, Hyundai 30% – joint investment surpasses $500 million.
- Hyundai’s bold initiative: Economic diversification, reducing oil dependency; targeting over 300,000 annual vehicle production by 2030.
- Production slated to commence in 2026; specific plant locations and models remain undisclosed.
- Collaboration signifies a pivotal milestone in automotive manufacturing, emphasizing global cooperation for shared economic progress.
Hyundai Motor Group of South Korea announced a historic collaboration with Saudi Arabia’s Public Investment Fund (PIF), to establish an advanced car manufacturing plant. President Yoon Suk Yeol of South Korea marked this landmark agreement at a ceremony held in Riyadh to officially mark this historic event for automotive industry collaboration.
The jointly built plant will boast an annual production capacity of 50,000 vehicles, comprising both electric and gas models. Notably, this facility will represent South Korean automotive production for the first time ever in the Middle East – signaling a new era of automotive production in this part of the world.
As per the terms of the agreement, PIF will assume a 70 per cent share in the joint venture while Hyundai holds onto 30%. With over $500 million expected in total investments expected for this endeavor, this project represents a considerable commitment.
Hyundai Motor Group, a global powerhouse in automotive manufacturing, currently ranks as the third-largest auto group by sales worldwide. Hyundai‘s strategic move to establish manufacturing operations in Saudi Arabia fits perfectly with their ambitious economic diversification efforts and reduce dependence on oil revenues. They expect their manufacturing facilities will produce over 300k vehicles annually by 2030 – marking a truly transformative leap in their automotive production capabilities.
Hyundai was honored for their strategic technology partnership and commitment to provide critical technical and commercial support during the creation of their new manufacturing plant.
Yoon Suk Yeol announced that the inaugural vehicles should come off of production line by 2026. While specific details regarding plant location or models being produced were not given, this venture promises to revolutionise automotive production in South Korea and its surroundings.
President Yoon Suk Yeol had the privilege of meeting Saudi Crown Prince Mohammed bin Salman, de facto ruler of Saudi Arabia. A distinguished delegation including Hyundai Motor Group Executive Chair E.S. Chung joined him during this visit.
Hyundai and the Saudi sovereign wealth fund’s joint venture is not only an unprecedented advancement in automotive manufacturing but is also testament to international cooperation and innovation as we pursue shared economic progress.
