PIF, Hyundai Motor Sign Deal to Establish Automotive Manufacturing Plant in Saudi Arabia

The Public Investment Fund (PIF) and Hyundai Motor Company (Hyundai) announced the signing of a joint venture agreement to establish a highly automated vehicle manufacturing plant in Saudi Arabia, reported the Saudi Press Agency on Sunday.

PIF will hold a 70% stake in the new joint venture with Hyundai holding the remaining 30%. Hyundai will also act as a strategic technology partner to support the development of the new manufacturing plant, by providing technical and commercial assistance. The total investment for the project is estimated to exceed $500 million.

The joint venture announced at the Saudi-Korean Business Forum, aims to manufacture 50,000 vehicles per year, including both internal combustion engine (ICE) and electric vehicles (EV). The plant groundbreaking is planned for 2024, and production is expected to begin in 2026.

The new manufacturing plant will create thousands of jobs and allow for knowledge and expertise transfer. The localization of Hyundai's vehicles will accelerate the development of Saudi Arabia's automotive and mobility ecosystem and attract further investments to the sector and the wider economy.

The partnership is PIF's latest initiative to elevate Saudi Arabia as a global automotive player, drive transformation in the sector, and boost manufacturing capabilities, infrastructure and supply chains in Saudi Arabia and beyond.

Among the major investments in the sector, PIF recently announced the launch of Tasaru, the National Automotive and Mobility Investment Company, which is dedicated to localizing automotive supply chains and manufacturing capabilities.

In addition, PIF and Saudi Electricity Company announced the Electric Vehicle Infrastructure Company, with plans to install over 5,000 electric car fast chargers across Saudi Arabia by 2030.

As the third largest automaker worldwide in terms of sales volume, Hyundai Motor Group brings invaluable technical capabilities and expertise to design, develop, and operate the vehicle manufacturing plant.

The joint venture also underscores PIF's efforts to create national and regional champions, building local capabilities, attracting cutting-edge technology, and creating highly skilled jobs in Saudi Arabia's automotive and mobility sectors. PIF's investments are also localizing automotive component manufacturing in Saudi Arabia, further strengthening the automotive supply chain.

Deputy Governor and Head of MENA Investments at PIF Yazeed A. Al-Humied said: "Partnering with Hyundai is another significant milestone for PIF in successfully enabling and accelerating the growth of Saudi Arabia's automotive ecosystem – one of our 13 priority sectors.”

“Our investment in vehicle manufacturing with Hyundai Motor Company is a pivotal milestone, aligning closely with our existing stakes in Lucid and Ceer Motors, and amplifying the breadth of Saudi Arabia's automotive and mobility value chain."

President and CEO of Hyundai Motor Company Jaehoon Chang said: "We are excited about the potential of this venture to drive significant advancements in vehicle production, fostering a sustainable and eco-friendly automotive future in the region. Our joint efforts will create opportunities for innovation and environmental progress."

The completion of the joint venture agreement is subject to obtaining customary approvals from the relevant authorities and satisfaction of conditions.

Taiwan officials held their first tariff talks with US officials on Friday, with both sides looking forward to further discussions soon, the island's government said on Saturday.

While Taiwan, a major semiconductor producer facing tariffs of 32%, complained they were unfair, it moved quickly to lay out proposals with the United States, offering a zero-tariff regime and greater purchases and investments in the country.

In a statement, Taiwan's Office of Trade Negotiations said its officials held a video conference with US officials whom it did not identify.

The talks focused on reciprocal tariffs between Taiwan and the United States, non-tariff barriers to trade, and a number of other economic and trade issues, including export controls, it added.

"Both sides look forward to conducting follow-up consultations ... in the near future and jointly building a strong and stable economic and trade relationship between Taiwan and the United States," it said.

The Office of the United States Trade Representative did not immediately respond to a request for comment sent outside of Washington work hours.

On Wednesday, US President Donald Trump said he would temporarily lower the hefty duties he had just imposed on dozens of countries, while further ramping up pressure on China.

Home to the world's largest contract chipmaker, TSMC, Taiwan has long sought a free trade deal with the United States, its most important international backer and arms supplier, even though the two have no formal diplomatic ties.

Taiwan faces increasing military and political pressure from its giant neighbor China, which views the democratically governed island as its own territory.

Taiwan's government rejects those claims, saying only the island's people can decide their future.

PIF, Hyundai Motor Sign Deal to Establish Automotive Manufacturing Plant in Saudi Arabia