PIF And Hyundai Motor Company Celebrate Significant Milestone In Automotive Manufacturing With HMMME

Hyundai Motor Manufacturing Middle East (HMMME) has initiated its construction at the King Salman Automotive Cluster in King Abdullah Economic City. This joint venture between the Public Investment Fund (PIF) and Hyundai Motor Company is a pivotal step for Saudi Arabia's automotive sector. PIF owns 70% of HMMME, while Hyundai holds 30%. The plant aims to produce its first vehicle by late 2026, with an annual target of 50,000 vehicles.

The facility will manufacture both internal combustion engine vehicles and electric vehicles. Deputy Governor and Head of MENA Investments at PIF, Yazeed Alhumied, stated: "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. This joint venture underscores PIF’s commitment to building local capabilities, attracting cutting-edge technology, and creating highly skilled jobs in Saudi Arabia’s automotive and mobility sector."

This marks Hyundai's inaugural manufacturing plant in the Middle East. The collaboration aims to bolster Saudi Arabia's position as a global automotive hub. By leveraging local talent, HMMME plans to create thousands of jobs and promote skills development within the Kingdom. This initiative aligns with broader efforts by PIF to enhance domestic manufacturing capabilities.

Vice Chair of Hyundai Motor Group Jaehoon Chang expressed optimism about this venture: "Today’s groundbreaking marks the beginning of a new chapter for both the Kingdom of Saudi Arabia and Hyundai Motor Company, as we lay the foundation for a new era of future mobility and technological innovation. Through our joint venture, we hope to contribute to the development of talent in the region with advanced skills and capabilities under Saudi Vision 2030."

The localization of Hyundai vehicles is expected to drive growth in Saudi Arabia's automotive ecosystem. This partnership is part of a series of initiatives by PIF aimed at transforming the sector. These efforts are enhancing infrastructure, strengthening supply chains, and advancing industrial capabilities within the Kingdom.

HMMME seeks to establish a robust base for automotive manufacturing in Saudi Arabia. By focusing on knowledge transfer and skill enhancement, it aims to support the country's industrial future. The collaboration underscores a commitment to fostering local expertise and integrating advanced technologies into the region.

The strategic partnership between PIF and Hyundai reflects a shared vision for future mobility solutions under Saudi Vision 2030. As this project progresses, it promises significant contributions to both economic growth and technological advancement within Saudi Arabia.

With inputs from SPA