May 19, 2025 -- Saudi Arabia's PIF and Hyundai partner to launch advanced automotive manufacturing facility

The cluster is projected to have an annual capacity of 50,000 vehicles, including both combustion engines (lCE) and electric vehicles (EVs).

Hyundai has consistently maintained a prominent position within Saudi's automotive market, Thecompany achieved one the largest market shares in the first quarter of 2025.

Saudi Arabia's Public Investment Fund (PIF), in partnership with Hyundai Motor, has commenced the establishment of an adavancedautomotive manufacturing facility at the King Salman Automotive Cluster. The cluster is projected to have an annual capacity of 50,000 vehiclesincluding both combustion engines (ICE) and electric vehicles (EVs). Thepartnership is aimed at servicing the Saudi market, reflecting alongstanding relationship between Saudi Arabia and Hyundai, spanningover four decades, the joint statement said.

The new facility signifies a pivotal moment in the development of SaudiArabia's automotive sector. It also highlights the Kingdom's ambitions tobecome a leading regional hub for advanced industrial manufacturing.

In the Saudi's automotive market, Hyundai has achieved one the largestmarket shares in the first quarter of 2025.

Discussions regarding the creation of a manufacturing plant began asearly as 2017. The project continued to gain momentum within theframework of the National Industrial Strategy (NIS), which was launchedin 2022.

The cluster already facilitates key partnerships with Lucid Motors andCeer. The newly announced Hyundai facility will also be part of thecluster. The facility is projected to contribute an estimated $5 billion tothe Kingdom's gross domestic product (GDP) by 2045.

Source: ET Auto