Hyundai Motor Company is establishing the Middle East's first production base in Saudi Arabia. This is a strategy to effectively target the rapidly growing Middle Eastern automotive market and strengthen the brand's presence.
Hyundai Motor Company reported that on the 14th (local time), it held a groundbreaking ceremony for the Hyundai Motor Manufacturing Middle East (HMMME) site located in the King Salman Automotive Industrial Complex in Saudi Arabia.
The King Salman Automotive Industrial Complex is a newly created automotive manufacturing hub in King Abdullah Economic City, designed to advance Saudi Arabia's automotive industry.
HMMME is a joint manufacturing corporation in which Hyundai Motor Company holds 30% equity and Saudi sovereign wealth funds hold 70%. It is being constructed as a factory capable of producing 50,000 electric vehicles and internal combustion engine vehicles annually, with operations aimed to start in the fourth quarter of next year.
The groundbreaking ceremony was attended by over 200 key figures and representatives from both countries, including Bandar Ibrahim Alkorayef, Saudi Minister of Industry and Mineral Resources; Yazid Alhumayed, Deputy President of Saudi sovereign wealth funds; Mun Byung-jun, Deputy Ambassador of South Korea to Saudi Arabia; and Jang Jae-hoon, Vice Chairman of Hyundai Motor Group.
Yazid Alhumayed noted, "HMMME will be a significant milestone for the development of the Saudi automotive industry," adding, "We will accelerate the growth of the mobility ecosystem through our ongoing partnership with Hyundai Motor Company."
Vice Chairman Jang Jae-hoon emphasized in his speech, "This groundbreaking ceremony signifies the start of a new era for both Hyundai Motor Company and Saudi Arabia," and added, "Hyundai Motor Group will actively respond to Saudi Arabia's commitment to nurturing the future mobility industry."
Saudi Arabia is promoting the national development project 'Vision 2030,' aiming to diversify its existing energy-centric industrial structure into manufacturing, hydrogen energy, and more. This collaboration is one of the key projects being executed by Saudi sovereign wealth funds to strengthen the automotive industry, which is a core component of Vision 2030.
Hyundai Motor Company plans to establish HMMME as a key hub to accelerate the growth and development of the mobility ecosystem in Saudi Arabia by combining its innovative manufacturing technologies with Saudi Arabia's outstanding talent and infrastructure.