Through many generations, Hyundai impressed the world with its manufacturing. With Hyundai motor factory Project new horizons will be opened for Saudi to show the world their abilities, so let’s discover all the details of this humongous project and secrets.
What Is the Hyundai Motor Factory Project in Saudi Arabia?
It’s a project that embodies the partnership between the Korean company and the Public Investment Fund, declaring about all the efforts that Saudi put to enhance their economy and building a new investment empire far from the fuel and oil sector.
In addition to the desire of upgrading the cars manufacturing sector in the kingdom, aiming to start the production in 2026, creating a new opportunity for foreign investment in the Saudi lands.
As a matter of fact, the Public Investment Fund owns 70% of “Hyundai Middle East Engine Manufacturing”, which means the full control of this project, while Hyundai Motors owns only 30%.
The Production Capacity of Hyundai Motor Factory Project
Hyundai is looking to create a new line of production through this project in Saudi by producing 50,000 cars annually, including the internal combustion engine (ICE) and the electric vehicles.
In other words, this opportunity will flow, strengthen and enhance the productivity of Korean manufacturing in the Middle East in general, not only in Saudi Arabia.
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The Objectives of the Hyundai Middle East Engine Manufacturing Project
With such a huge project like this, countless objectives and aims are expected to be achieved, for example:
Develop Saudi Arabia’s Automotive Industry
The JV is a part of PIF’s effort to enhance and localize the automotive manufacturing ecosystem.
Manufacture Both ICE and Electric Vehicles
By producing both types of vehicles, the project supports current market demands while also preparing for the future shift toward electric mobility.
This dual production strategy positions Saudi Arabia as a regional hub for multiple automotive technologies, which change the industrial map of the region.
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Achieve Significant Production Capacity
This project aims to build a large scale factory capable of producing up to 50,000 cars per year, this high production target serves purposes, such as:
- Supports the expansion of the local automotive market
- Reduces reliance on imported vehicles
- Builds a foundation for exporting vehicles in the future
- Driving economics of scales, making local manufacturing more cost effective
Create Highly Skilled Jobs
This objective focuses on generating employment opportunities that require advanced technical expertise, such as engineering, robotics, automotive design, electric vehicle technologies, quality control and smart manufacturing.
Hyundai Motor Factory Project Opening
If you are asking yourself when will the Hyundai Motor Factory Project Begin Operations in Saudi Arabia?
According to the PIF announcement, the Hyundai Motor Factory in Saudi Arabia is expected to begin production in the fourth quarter of 2026.
In the end, the Hyundai motor factory project is a new beginning for a new era in Saudi, especially with the investment opportunities, such as countless of them that you can discover in Bayut-KSA.
