Following Lucid’s lead, Hyundai will open a new plant in the Middle East next year
- Hyundai has officially started construction on its first plant in the Middle East.
- Located in Saudi Arabia, the plant is expected to open by the end of next year.
- The facility will produce up to 50,000 electric and ICE-powered vehicles annually.
Automakers are flocking to setup shop in a new location and it has nothing to do with Trump’s tariffs. in fact, quite the opposite, as Saudi Arabia has emerged as the automotive production capital of the Middle East.
Things kicked into high gear in 2023 when Lucid opened Advanced Manufacturing Plant 2 in the Kingdom. It assembles the Air using semi-knock-down kits that are “pre-manufactured” at the company’s main plant in Casa Grande, Arizona.
More: Lucid Opens New Plant In Saudi Arabia, Will Build The Air EV
However, the plant aims to become a fully fledged production facility later this decade. If everything goes according to plan, it will be able to build up to 150,000 vehicles annually, which will be sold in Saudi Arabia as well as export markets.
While the Lucid plant wasn’t surprising considering Saudi Arabia’s Public Investment Fund owned over 60% of the automaker at the time, Hyundai has now broken ground on a new plant in the King Salman Automotive Cluster within the King Abdullah Economic City. It will become the company’s first “production base” in the Middle East and it lays the “foundation for becoming a leading brand in Saudi Arabia.”
The plant is slated to open in the fourth quarter of 2026 and have an annual production capacity of 50,000 units. The company didn’t say what will be built at the facility, but confirmed it will make vehicles with electric powertrains as well as internal combustion engines.
The Hyundai Motor Manufacturing Middle East (HMMME) facility is a joint venture between the automaker and Saudi Arabia’s Public Investment Fund. The latter will have a 70% stake, while Hyundai controls the remaining 30%.
While Saudi Arabia is an unusual spot for automotive production, their sovereign wealth fund has been enticing automakers to setup shop in the country. The investments are part of a national development project known as Vision 2030, which seeks to diversify the economy. As part of this effort, Saudi Arabia wants to be less reliant on oil production and vehicle manufacturing is part of that.
#Hotspot #Car #Production #Rising #Unexpected #Place
