RIYADH — Hyundai is set to establish an automated vehicle manufacturing plant in Saudi Arabia through a groundbreaking $500 million agreement with the Public Investment Fund (PIF). Announced on Sunday at the Saudi-Korean Business Forum, the joint venture positions PIF as the majority stakeholder, holding 70%, while Hyundai claims the remaining 30%. Hyundai will also serve as a strategic technology partner, providing vital technical and commercial support to the development of the automated manufacturing facility. Anticipated to begin production in 2026, the plant aims to manufacture 50,000 vehicles annually, encompassing both internal combustion engine (ICE) and electric vehicles (EV). The project is scheduled to commence construction in 2024, heralding a new era in Saudi Arabia's automotive landscape. The collaboration, designed to bolster Saudi Arabia's global automotive standing, is part of PIF's broader strategy to catalyze transformation in the sector. The new plant is expected to generate thousands of jobs and foster the transfer of knowledge and expertise. The venture aligns with PIF's recent initiatives, including the establishment of Tasaru, the National Automotive and Mobility Investment Company, dedicated to localizing automotive supply chains. Moreover, PIF and the Saudi Electricity Company announced plans for the Electric Vehicle Infrastructure Company, aiming to install over 5,000 electric car fast chargers across Saudi Arabia by 2030. As the third-largest automaker globally, Hyundai Motor Group's participation in the joint venture is poised to elevate Saudi Arabia's automotive and mobility ecosystem. Yazeed A. Al-Humied, deputy governor and head of MENA Investments at PIF, stated, "Our investment in vehicle manufacturing with Hyundai Motor Company is a pivotal milestone, amplifying the breadth of Saudi Arabia's automotive and mobility value chain." Jaehoon Chang, president and CEO of Hyundai Motor Company, expressed excitement about the venture, stating, "Our joint efforts will create opportunities for innovation and environmental progress." The completion of the joint venture agreement is contingent on customary approvals from relevant authorities and the satisfaction of specified conditions.
