Hyundai Motor to be first Korean carmaker with factory in Middle East

[Source : The Saudi government Twitter]

Hyundai Motor Co. would be the first Korean automaker to build a car manufacturing factory in the Middle East as it is expected to build its first car module assembly line in Saudi Arabia under a recently signed agreement.

According to the automotive industry, Hyundai Motor and Saudi Ministry of Industry and Mineral Resources recently signed a memorandum of understanding (MOU) to develop the Saudi automotive industry. It was signed in the presence of Minister of Industry and Mineral Resources Bandar Alkhorayef, Minister of Economy and Planning Faisal Al-Ibrahim, and Hyundai Motor Executive Vice President and Head of Global Operations Division Kim Seon Seob.

After signing the agreement, the Saudi government announced “Hyundai Motor plans to build a Completely Knocked Down (CKD) Kits plant to produce both electric and combustion engine vehicles” in the Kingdom after saying the agreement is aimed at strengthening cooperation to achieve Saudi Arabia’s national goals for industrial strategies.

If Hyundai Motor builds a CKD factory, it will be its first car manufacturing line in the Middle East. It will also be the first Korean carmaker with a factory in the region. Korea’s biggest automaker currently operates a manufacturing corporation in Turkiye, which is the closest to the region.

Saudi Arabia is set to reinforce its manufacturing industry including automotives in its effort to reduce hefty dependency on oil for economy. The nation’s goal is to manufacture over 300,000 cars by the year 2030, which explains the nation’s move to partner with South Korea’s global auto manufacturer.