Hyundai Motor Group is poised to significantly impact Saudi Arabia’s ambitious Red Sea coastal development project, part of the kingdom’s Vision 2030, with a memorandum of understanding (MOU) signed with Red Sea Global (RSG) in Riyadh. This partnership underscores the group’s commitment to pioneering future mobility solutions, including electric and hydrogen vehicles, advanced air mobility (AAM), and autonomous driving technologies across the Red Sea development area.
As a key element of Saudi Arabia’s Vision 2030, spearheaded by Crown Prince Muhammad bin Salman, the Red Sea project aims to transform the nation into a prime destination for luxury and eco-tourism. RSG’s vision for a luxury resort and eco-tourism complex fits perfectly with Hyundai’s innovative mobility solutions, poised to revolutionize travel and transportation within the development.
Hyundai Motor is taking concrete steps towards this vision with the commencement of construction on a complete knock down (CKD) plant within King Abdullah Economic City. Set to break ground in the first half of this year, the facility aims to produce 50,000 vehicles annually by 2026, establishing itself as the epicenter of electric vehicle manufacturing in the Middle East. Furthermore, Hyundai’s initiative to supply hydrogen buses to Saudi Arabia signifies a broader commitment to sustainable mobility solutions in the region.
Saudi Arabia, the largest automobile market in the Middle East with annual sales of about 550,000 vehicles, is witnessing a growing demand for automobiles, with projections by Fitch Solutions estimating the market to expand to 750,000 units by 2032. Hyundai, currently holding the second-largest market share in the kingdom, is strategically positioning itself to capitalize on this growth. Along with its affiliate Kia, Hyundai aims to command a significant portion of the Middle East market, targeting sales of 550,000 units across the region by 2030.
This ambitious move by Hyundai contrasts with Toyota’s hesitancy, despite its dominant market position in Saudi Arabia. The Saudi government’s ventures with Taiwan’s Foxconn to produce electric vehicles and its investment in Renault Group’s internal combustion vehicle business reflect a growing interest in diversifying the nation’s automotive and mobility landscape. Hyundai’s proactive strategy in Saudi Arabia and the broader Middle East market signifies a bold step towards a sustainable and innovative mobility future, aligning with global trends and regional development goals.
