18-05-2025
Hyundai's New Plant Marks the Birth of Saudi Car Manufacturing
A major milestone was marked at King Salman Industrial City, nestled within King Abdullah Economic City (KAEC), as high-level dignitaries convened for the official launch of Hyundai's cutting-edge manufacturing facility in Saudi Arabia—set to roll out Korean vehicles directly from Middle Eastern soil.
This new facility, known as Hyundai Motor Manufacturing Middle East (HMMME), is poised to shift the regional automotive paradigm. With an ambitious output target of 50,000 vehicles annually, it represents not just another plant, but the very first full-scale production facility—not merely an assembly site—in the Middle East. Hyundai plans to debut its first locally manufactured vehicle in the final quarter of 2026, offering both traditional and electric drivetrains.
A Strategic Leap Toward Vision 2030
• Empowering local industry: The project is a joint endeavor, with the Saudi Public Investment Fund holding a 70% stake and Hyundai owning the remaining 30%. This structure underlines the Kingdom's intent to localize manufacturing, boost national employment, and accelerate its Vision 2030 objectives.
• Flexible, future-forward production: By integrating both internal combustion and electric vehicle lines, the plant will cater to a broader market while aligning with global trends toward cleaner transportation.
Integrated for Efficiency
Strategically situated within the King Salman Automotive Complex, the factory benefits from a robust support ecosystem—including logistics hubs and parts suppliers—cutting down delivery times and optimizing operational costs across the Gulf.
Key Metrics That Matter
• 50,000 units per year: This output capacity positions Hyundai's Saudi plant as a leading auto producer in the Arab world.
• 2026 launch goal: The rollout of the inaugural model, especially with advanced infrastructure tailored for EV production, is set for late 2026.
• Job creation on a national scale: Thousands of new roles—from engineering to admin—will emerge, fostering technical expertise and advancing Saudi Arabia's industrial capabilities.
Why This Factory Changes the Game for Arab Consumers
• Cost efficiency: Lower shipping and customs fees are likely to bring down prices, particularly for SUVs, hybrids, and EVs, making them more accessible.
• Enhanced after-sales support: Local service centers and parts depots will translate into faster maintenance, improved spare parts availability, and greater customer satisfaction.
• Growth potential: The facility opens up opportunities for regional suppliers and service providers, strengthening the industrial supply chain and encouraging sustainable investment.
Hyundai's newly inaugurated plant in KAEC is more than just a factory—it marks a bold reimagining of how and where vehicles are made in the Arab world. By anchoring production within the region and embracing both gasoline and electric technologies, the Kingdom is positioning itself as a major player in the global automotive arena.
Expect the first wave of Hyundai vehicles from the HMMME plant to arrive by late 2026—ushering in what may be the most significant evolution our regional car market has seen in a generation.
