Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef has said the Kingdom is making “confident strides” at an accelerated pace to localize the automotive industry.
Alkhorayef spoke on Wednesday at the groundbreaking ceremony for the Hyundai plant at King Salman Automotive Cluster in King Abdullah Economic City in Jeddah.
He said the Kingdom’s efforts will create added value for the national economy and enhance its global competitiveness in line with the objectives of Saudi Vision 2030.
The plant is being built under a strategic partnership between the Public Investment Fund (PIF) and Hyundai Motor Company, a move that supports the localization of the automotive industry in the Kingdom and advances economic diversification.
The minister described the initiative as an important milestone in the journey to localize the automotive industry due to its significant impact.
He added that it will enhance industrial capabilities, strengthen supply chains, localize production, and develop local content, meeting local and regional demand for automobiles and consolidating the Kingdom's position as a global hub for the automotive industry.
He praised PIF’s role in driving industrial transformation and empowering high-value sectors with tangible economic impact in the Kingdom and the region.
He also highlighted the importance of integrated efforts by all relevant government entities in advancing the localization of the automotive industry, including the establishment of the Hyundai plant.
He thanked the Ministries of Investment, Energy, and Finance; the Ministry of Economy and Planning; the National Industrial Development Center; and the Saudi Industrial Development Fund.
Alkhorayef stressed that the project aligns with the Kingdom's accelerating industrial goals and its vision to transform ambitions into reality.
The National Industrial Strategy aims to attract three global automotive manufacturers to produce 300,000 vehicles annually within a single industrial complex, a goal now realized with Hyundai joining Lucid and Ceer.
The factory is projected to produce 50,000 vehicles annually and contribute approximately $5 billion to the Kingdom's gross domestic product (GDP) by 2045.
Hyundai has had a presence in the Saudi market for over 40 years and currently holds the second-largest market share in the Kingdom’s automotive sector.
