Jeddah, Saudi Arabia — Saudi Arabia is rapidly advancing its automotive ambitions with the groundbreaking of a Hyundai car manufacturing facility at the King Salman Auto Complex. This facility is located in King Abdullah Economic City. This strategic project aligns with Vision 2030 and receives Public Investment Fund(PIF) backing.
Hyundai Saudi Arabia Plant to Produce 50,000 Vehicles Annually
At the ceremony, Minister of Industry and Mineral Resources Bandar Al-Khorayef emphasized that the Kingdom is moving “at an accelerated pace” to localize vehicle production. The aim is to enhance supply chains and establish itself as a global automotive hub. Hyundai Motor Company and PIF jointly developed the factory, which will produce 50,000 vehicles annually. This will contribute an estimated $5 billion to Saudi GDP by 2045.
The facility joins earlier investments from Lucid Motors and Ceer, forming a trio of auto leaders. Together, they are set to manufacture 300,000 cars annually at the complex. Al-Khorayef highlighted how the project strengthens local content, boosts industrial capabilities, and builds a competitive, export-oriented sector.
National Strategy Powers Saudi Auto Manufacturing Growth
This initiative reflects the broader goals of the National Industrial Strategy. Al-Khorayef praised cross-ministerial cooperation, including efforts by the ministries of investment, energy, finance, and economy. Support from the National Industrial Development Center and the Saudi Industrial Development Fund facilitated the Hyundai partnership.
Hyundai has maintained operations in Saudi Arabia for over four decades. The company holds the second-largest market share in the Kingdom’s automotive sector. The new plant will accelerate economic diversification and support high-value manufacturing localization under Vision 2030.
The Saudi Standard’s View: Auto Ambition with Local Depth
Saudi Arabia is not just assembling cars but building a value chain. The Hyundai Saudi Arabia plant represents a strategic shift toward high-value, export-ready manufacturing. It aligns industrial goals with global auto trends, particularly around EVs and advanced production.
The project’s integration within a larger auto ecosystem—including Lucid and Ceer—signals a move toward ecosystem thinking. For Saudi Arabia to lead regionally in automotive production, such layered development ensures scale and sustainability. This is a shift from market participation to market shaping.
