Saudi Arabia's Public Investment Fund (PIF), in partnership with

Hyundai

Motor, has commenced the establishment of an adavanced automotive manufacturing facility at the

King Salman Automotive Cluster

.

The cluster is projected to have an annual capacity of 50,000 vehicles, including both combustion engines (ICE) and electric vehicles (EVs). The partnership is aimed at servicing the Saudi market, reflecting a longstanding relationship between Saudi Arabia and Hyundai, spanning over four decades, the joint statement said.

Hyundai in Saudi Arabia

The new facility signifies a pivotal moment in the development of Saudi Arabia’s automotive sector. It also highlights the Kingdom's ambitions to become a leading regional hub for advanced industrial manufacturing.

In the Saudi's automotive market, Hyundai has achieved one the largest market shares in the first quarter of 2025.

Discussions regarding the creation of a manufacturing plant began as early as 2017. The project continued to gain momentum within the framework of the National Industrial Strategy (NIS), which was launched in 2022.

The cluster already facilitates key partnerships with Lucid Motors and Ceer. The newly announced Hyundai facility will also be part of the cluster. The facility is projected to contribute an estimated $5 billion to the Kingdom’s gross domestic product (GDP) by 2045.

In the partnership with Hyundai, PIF holds a 70 per cent stake.