Hyundai Motor Group will start operations at its first Middle East plant in Saudi Arabia in late 2026. The facility will have an annual production capacity of 50,000 vehicles. Furthermore, Executive Chair Chung Euisun met with Saudi Crown Prince Mohammed bin Salman to discuss expanding cooperation in mobility and energy sectors.
The meeting, held at the Ritz-Carlton hotel, marked Chung’s first one-on-one discussion with the Saudi leader. During the talks, they exchanged views on automotive manufacturing, smart city development, and next-generation energy solutions. As a result, Hyundai aims to strengthen its regional presence and develop strategic partnerships.
Chung explained that the factory is regionally customized and equipped with specialized machinery. This design ensures it meets local industrial demands and customer needs. Moreover, production capacity could increase depending on market circumstances.
He also highlighted Saudi Arabia’s Vision 2030. The plan focuses on economic diversification, reducing oil dependence, and advancing smart cities. Therefore, Hyundai will support these objectives through innovative mobility solutions and investment in renewable energy projects.
Additionally, Hyundai expects wide-ranging cooperation in sectors such as hydrogen, small modular reactors, and nuclear power. This approach allows the company to contribute to the energy transition while expanding its automotive operations.
Before the Riyadh meeting, Chung inspected the Hyundai Motor Manufacturing Middle East construction site. The plant is a 30-70 joint venture between Hyundai and the Saudi Public Investment Fund. Notably, it represents Hyundai’s first production hub in the Middle East.
Construction began in May 2025. Consequently, the facility will produce both internal combustion engine vehicles and electric vehicles. Hyundai plans Saudi-only editions, expands its SUV lineup, and rolls out hybrid and extended-range EV models.
Hyundai’s sister company, Kia, will also increase EV and hybrid vehicle supply. In addition, it will promote the Kia Tasman pickup and focus on purpose-built vehicles for Saudi smart city projects.
The automaker sold 149,604 vehicles in the first nine months of 2025, up 8.5% from last year. Since Saudi Arabia accounts for about 34% of the Middle Eastern market, the plant strengthens regional industrial ties.
Finally, Hyundai aims to combine innovation, sustainability, and regional focus. The Middle East plant is a key step in its global expansion and a milestone for economic cooperation with Saudi Arabia.
