PIF and Hyundai Launch Hyundai Motor Manufacturing Middle East in Saudi Arabia
KAEC, Saudi Arabia – May 14, 2025: Hyundai Motor Manufacturing Middle East (HMMME), a joint venture between the Public Investment Fund (PIF) and Hyundai Motor Company, has officially begun its journey with a groundbreaking ceremony at the King Salman Automotive Cluster within King Abdullah Economic City (KAEC). This milestone represents a significant step in developing Saudi Arabia’s automotive industry.
A Strategic Joint Venture for Automotive Excellence
HMMME is a landmark project designed to boost Saudi Arabia’s automotive manufacturing capabilities. PIF holds a 70% stake in the joint venture, while Hyundai Motor Company owns the remaining 30%. The manufacturing plant will have a production capacity of 50,000 vehicles annually, including both internal combustion engine (ICE) vehicles and electric vehicles (EVs). Production is expected to commence in the fourth quarter of 2026.
Enabling Industrial Growth and Job Creation
Yazeed A. Alhumied, Deputy Governor and Head of MENA Investments at PIF, emphasized the importance of this initiative:
“This groundbreaking is a significant milestone for PIF as it further strengthens the automotive industry in Saudi Arabia. PIF will continue to enable and accelerate the growth of Saudi Arabia’s automotive ecosystem through partnerships.”
The new facility is set to create thousands of jobs, leveraging local talent and supporting knowledge transfer. The focus on localizing Hyundai’s vehicles will accelerate the development of Saudi Arabia’s automotive and mobility ecosystem, aligning with the goals of Vision 2030.
Hyundai’s Commitment to Future Mobility
Jaehoon Chang, Vice Chair of Hyundai Motor Group, highlighted the transformative potential of this partnership:
“Today’s groundbreaking marks the beginning of a new chapter for both the Kingdom of Saudi Arabia and Hyundai Motor Company. We are committed to advancing talent development and technological innovation in the region.”
HMMME will serve as a platform for industrial growth and excellence, becoming a key player in the Kingdom’s automotive sector. The facility will also focus on transferring advanced manufacturing techniques and technology, fostering a highly skilled workforce in the region.
Advancing Saudi Arabia’s Automotive Ambitions
As Saudi Arabia positions itself as a global automotive hub, HMMME is a crucial part of PIF’s strategy to diversify the Kingdom’s economy and build world-class manufacturing capabilities. The partnership with Hyundai Motor Company is one of several strategic initiatives aimed at:
- Enhancing Local Manufacturing: Boosting domestic production of both ICE and electric vehicles.
- Supporting Job Creation: Providing thousands of skilled jobs in automotive manufacturing and engineering.
- Promoting Technology Transfer: Leveraging Hyundai’s global expertise to build local capabilities.
- Strengthening Supply Chains: Developing local suppliers and expanding Saudi Arabia’s industrial base.
A Platform for Growth and Excellence
Wongyun Park, Vice President and CEO of Hyundai Motor Manufacturing Middle East, stated:
“With HMMME, we are driving change forward and paving the way for a new industrial future in the region. This facility will become a platform for growth and industrial excellence in the heart of the Kingdom.”
The HMMME plant is designed to meet the highest global standards, ensuring sustainable and efficient production processes. The facility will focus on manufacturing a range of vehicles, including electric models, which align with Saudi Arabia’s sustainability goals.
Supporting Vision 2030 and Industrial Development
The launch of Hyundai Motor Manufacturing Middle East is part of PIF’s broader strategy to transform Saudi Arabia into a global leader in automotive manufacturing. As the Kingdom continues to diversify its economy, the automotive sector is emerging as a key pillar of industrial growth.
With its focus on local talent development, technology transfer, and sustainable manufacturing, HMMME is poised to play a leading role in shaping the future of Saudi Arabia’s automotive industry.
