Hyundai setting up new factory in Saudi Arabia

Once operational, the carmaker will build 50,000 cars annually in the country.

Hyundai has started construction work on a new factory in Saudi Arabia, making it the first major foreign car manufacturer to set up in the country.

Once operational, the carmaker will build 50,000 cars annually in the country. It is based in the King Salman Automotive Cluster, a new automotive industry hub in the King Abdullah Economic City near Jeddah. The plant will produce both internal combustion vehicles and EVs as per local demand. The first vehicle is set to roll out in October 2026. According to the business newspaper The Korea Times, vehicles will be assembled from knock-down kits using parts sourced from Korea.

Factory ownership will be split between the Saudi Public Investment Fund, which holds a 70% stake, and Hyundai, holding the remaining 30%.

The plant is expected to generate some $5 billion (£3.8bn) for the Saudi economy within 20 years. “We believe our role will be significant in this early stage of the industry’s development here,” Hyundai brand chief Jaehoon Chang told reporters at the groundbreaking ceremony.

Hyundai sold around 1,36,000 cars in Saudi Arabia last year.

Source: Autocar UK