An investment plan of 180 crore Riyals has been devised for building a car factory. 70 percent stake in the project is given to Public Investment Fund and 30 percent to Hyundai Company.
The automotive industry is one of the 13 priority sectors of the Saudi Public Investment Fund. PIF Deputy Governor and Middle East and North Africa Investment Head Yazeed Alhumaid said that the partnership agreement signed by Saudi Public Investment Fund with Hyundai is an important milestone in accelerating the growth of this sector.
The joint venture was announced at the Saudi-Korean Business Forum. It aims to manufacture 50,000 vehicles per year, including conventional fuel vehicles and electric vehicles. Hyundai will provide commercial and technical support in the joint venture that will set up the factory and market it. Hyundai Motor Company is the third largest car manufacturer in the world by the number of vehicles sold.
The car factory plans to start production in 2026. The foundation stone will be laid next year. The factory, which provides thousands of jobs, will also help transfer knowledge and experience. It is pointed out that bringing production directly to the Gulf will be a huge advantage for Hyundai in terms of pricing and brand affinity.
The Public Investment Fund will accelerate efforts to strengthen Saudi Arabia’s global position in the automotive industry. PIF recently launched a new investment company called Tasaroo to develop the capacity of auto supply chains. Electric Vehicles Infrastructure Company has been started by PIF and Saudi Electricity Company to prepare more than 5000 vehicle charging stations in Saudi by 2030. Saudi has been making good progress in the automotive sector recently.
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