RIYADH: The Public Investment Fund (PIF) of Saudi Arabia and Hyundai Motor Company (Hyundai) have signed a joint venture to setup a highly automated vehicle manufacturing plant in the Kingdom, Saudi Press Agency (SPA) reported.
PIF will hold a 70% share in the project while Hyundai will be holding the remaining 30%. Hyundai will also provide technology for the development of the new manufacturing plant. The total investment for the project is expected to exceed $500 million.
The joint venture was announced at the Saudi-Korean Business Forum, that would manufacture 50,000 vehicles per year, including both internal combustion engine (ICE) and electric vehicles (EV).
PIF and Hyundai Motor Company Sign Joint Venture Agreement to Establish New Automotive Manufacturing Plant in Saudi Arabia.https://t.co/8v9fCbuW9k#SPAGOV pic.twitter.com/4IzOnYnHt2
— SPAENG (@Spa_Eng) October 22, 2023
The plant groundbreaking of the plant is likely to take place in 2024 while production is expected to start in 2026.
The new manufacturing plant will create thousands of employment opportunities. The local manufacturing of Hyundai’s vehicles will enhance the development of Saudi Arabia’s automotive and mobility ecosystem.
Saudi Arabia a global automotive player
The PIF’s latest initiative aims to elevate Saudi Arabia as a global automotive player. The PIF has also recently announced the launch of Tasaru, the National Automotive and Mobility Investment Company, to localizing automotive supply chains.
PIF and Saudi Electricity Company have also announced the Electric Vehicle Infrastructure Company, with plans to install over 5,000 electric car fast chargers across Kingdom by 2030.
READ ALSO: Palestinian Death Toll from Israeli Bombing on Gaza Climbs to 4,651
Hyundai Motor Group, the third largest automaker in the world bring technical capabilities and expertise to design, develop, and operate the car manufacturing facility.
The Deputy Governor and Head of MENA Investments at PIF, Yazeed A. Al-Humied on the occasion said partnering with Hyundai is another major milestone for PIF in successfully accelerating the growth of Saudi Arabia’s automotive ecosystem.
