Hyundai Motor Company and the Public Investment Fund (PIF) have signed a joint venture (JV) agreement to establish a highly automated vehicle manufacturing plant in Saudi Arabia. The facility will manufacture both internal combustion engines and electric vehicles (EVs).
PIF will hold a 70% stake in the new JV with Hyundai holding the remaining 30%.
Hyundai will also act as a strategic technology partner to support the development of the new manufacturing plant, by providing technical and commercial assistance.
The plant groundbreaking is planned for 2024, and production is expected to begin in 2026.
Hyundai has also signed a memorandum of understanding (MOU) with Korea Automotive Technology Institute (KATECH), Air Products Qudra (APQ) and the Saudi Public Transport Company (SAPTCO) to establish and develop an ecosystem for hydrogen-based mobility in the Kingdom.
Jaehoon Chang, President and CEO of Hyundai Motor Company, says: “We are excited about the potential of this venture to drive significant advancements in vehicle production, fostering a sustainable and eco-friendly automotive future in the region. Our joint efforts will create opportunities for innovation and environmental progress.”
Yazeed Al-Humied, Deputy Governor and Head of MENA Investments at PIF, adds: “Partnering with Hyundai is another significant milestone for PIF in successfully enabling and accelerating the growth of Saudi Arabia’s automotive ecosystem – one of our 13 priority sectors. Our investment in vehicle manufacturing with Hyundai Motor Company is a pivotal milestone, aligning closely with our existing stakes in Lucid and Ceer Motors, and amplifying the breadth of Saudi Arabia’s automotive and mobility value chain.”
Hyundai Motor Group is the third largest automaker worldwide in terms of sales volume.