PIF will hold a 70% stake in the new joint venture 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 total investment for the project is estimated to exceed $500 million.
The joint venture announced at the Saudi-Korean Business Forum The goal is to produce 50,000 vehicles per year, including both internal combustion engine (ICE) and electric vehicle (EV) models. The plant groundbreaking is scheduled for 2024, with production expected to commence in 2026.
According to Hyundai Motor's press release, the new manufacturing facility will create thousands of jobs and enable the transfer of knowledge and expertise. The localization of Hyundai's vehicles will accelerate the development of Saudi Arabia's automotive and mobility ecosystem, attracting further investment in the sector and the economy as a whole.
As for Saudi Arabia's automotive industry, according to Arab News, the Kingdom currently operates 160 vehicle factories. Of these, 33 are dedicated to the production of parts, accessories and engines, while 21 focus on vehicle manufacturing and structural components, including various processing operations. Another 106 facilities are dedicated to the production of trailers, semi-trailers and trucks.
Source: Hyundai