- Saudi Arabia’s PIF and Hyundai will establish a manufacturing plant at the King Salman Automotive Cluster to produce 50,000 ICE and EV vehicles annually.
- The facility, focused solely on the Saudi market, marks a major step in the Kingdom’s goal to become a regional hub for advanced auto manufacturing.
- PIF will hold a 70% stake, with the project expected to contribute $5 billion to Saudi GDP by 2045.
Saudi Arabia's Public Investment Fund (PIF) and Hyundai Motor have announced the establishment of an advanced automotive manufacturing plant at the King Salman Automotive Cluster. The cluster is expected to have a capacity of 50,000 vehicles each year, comprising both combustion engines (ICE) and electric vehicles (EVs).
The partnership will target the Saudi market only, and acknowledges Hyundais established relationship with Saudi Arabia which goes back over 40 years, according to a joint statement.
The new auto manufacturing facility offers a pivotal moment in the life of Saudi Arabia's automotive industry, and further demonstrates the Kingdom's ambition to become a leading regional hub for advanced industrial manufacturing.
Also Read: How IoT is Enhancing Efficiency in Automotive Manufacturing Processes
Hyundai has obtained one the highest market share in Saudi Arabia’s automotive industry, in Q1 2025. Conversations about establishing a manufacturing facility began as early as 2017. The project continued to develop under the auspice of the NIS, which was initiated in 2022.
The cluster already supports strategic partnerships with Lucid Motors and Ceer and will include the newly announced Hyundai facility. By 2045, the project is forecasted to deliver a contribution of around $5 billion to the Kingdom's GDP. In the partnership with Hyundai, PIF will hold a 70 percent stake.