Big volume brand – Hyundai joins Lucid Motors, Ceer, Pirelli Tires to make this a highly likely possibility round
Walk the floor of any global car plant and the rhythm is unmistakable – stamping presses pounding steel, robots welding in sync, conveyor belts carrying half-built bodies toward completion. This choreography is the backbone of an industry that has spent more than a century perfecting scale.
Hyundai Breaks Ground
Hyundai Motor Company has officially broken ground on its first manufacturing facility in the Middle East, anchoring itself in the King Salman Automotive Cluster at King Abdullah Economic City (KAEC).
For the Korean giant, which already has a very strong presence on GCC roads, this is not an exploratory foothold but a definitive statement. Production will span both internal combustion models and electric vehicles, a dual mandate that reflects the region’s richness in oil but also its pivot towards electrified performance.
A Strategic Alliance
Hyundai Motor Manufacturing Middle East (HMMME) arrival comes in partnership with Saudi Arabia’s Public Investment Fund (PIF), which holds a controlling 70 percent stake to Hyundai’s 30 percent. The plant estimates an initial production run of 50,000 units a year. The move will not only populate showrooms but also seed an ecosystem of supply chains, technical training, and industrial know-how.
Vision 2030 in Motion
Every weld and carefully placed component at the KAEC site connects back to Vision 2030, Saudi Arabia’s blueprint for life beyond oil. By tying itself to Hyundai, the Kingdom secures both credibility and capability in one move. Mobility here is not simply about vehicles on the road but about positioning Saudi Arabia within the industrial economy of the future.
The Bigger Picture – GCC and its Regional Influence
The Middle East has long been a voracious consumer of cars, but rarely a serious producer. As China positions itself as a manufacturer that is the new standard of electrified performance across multiple segments worldwide, Hyundai’s move into Saudi Arabia’s automotive landscape gives the Korean manufacturer a competitive edge.
In addition to KSA’s own local automotive market, it has the advantage of its strategic position as a GCC country together with the United Arab Emirates, Qatar, Kuwait, Bahrain and Oman. These six countries share a unified tariff for imports and exports within the region and one should never underestimate the combined market size with extended regional neighbours in Levant and North Africa.
As BYD looks to kickstart its manufacturing presence in Pakistan and Tesla sets foot into India’s ever growing manufacturing landscape, the presence of an established global automaker through HMMME, supported by an aggressive vision, policy stability, sovereign capital and a passion or even an obsession with automobiles amongst the population with a median age of less than 30 years and a higher spending power than most global regions, places Saudi Arabia in contention as a manufacturing hub to watch.
