Riyadh – Mubasher: The Public Investment Fund (PIF) and Hyundai Motor Company (Hyundai) signed a joint venture (JV) agreement to establish a highly automated vehicle manufacturing plant in Saudi Arabia.
The Saudi fund will own a 70% stake in the new JV, while Hyundai will hold the remaining 30% equity, according to a press release.
Hyundai will secure technical and commercial assistance to support the development of the new manufacturing plant.
The plant groundbreaking is planned to take place in 2024, whereas the production is expected to begin in 2026. Meanwhile, the total investment for the project is estimated to exceed $500 million.
The new manufacturing plant will provide job creation and the localisation of Hyundai’s vehicles will boost the Kingdom’s automotive and mobility ecosystem. This is in addition to attracting further investments to the sector and the wider economy.
Yazeed Al Humied, Deputy Governor and Head of MENA Investments at PIF, commented: “Our investment in vehicle manufacturing with Hyundai Motor Company is a pivotal milestone, aligning closely with our existing stakes in Lucid and Ceer Motors, and amplifying the breadth of Saudi Arabia's automotive and mobility value chain.”
Jaehoon Chang, President and CEO of Hyundai, said: “We are excited about the potential of this venture to drive significant advancements in vehicle production, fostering a sustainable and eco-friendly automotive future in the region. Our joint efforts will create opportunities for innovation and environmental progress.”
The partnership marks PIF’s latest initiative to promote Saudi Arabia as a global automotive player and drive transformation in the sector across the Kingdom and beyond.
The Saudi fund recently launched the National Automotive and Mobility Investment Company (Tasaru) to localise automotive supply chains and manufacturing capabilities.
The PIF and Saudi Electricity Company(SEC) also joined forces for the Electric Vehicle Infrastructure Company, with plans to install more than 5,000 electric car fast chargers across Saudi Arabia by 2030.
