South Korea’s Hyundai Motors has joined the race to build EV cars in Saudi Arabia, signing a memorandum of understanding with Saudi Arabia’s Ministry of Industry and Mineral Resources to build a factory for the complete assembly of electric cars in the Kingdom, the Saudi Press Agency (SPA) reported.
The agreement fits into Saudi Arabia’s plans to localize the automotive sector. The Kingdom has ambitious plans to become a major player in the global automotive industry, and has made significant investments in research and development, as well as in the infrastructure necessary to support a thriving car manufacturing industry.
Saudi Arabia is also seeking to increase investment opportunities in the sector in order to achieve the objectives of the national strategy for the industry in developing local manufacturing capabilities, and in line with the objectives of the Kingdom’s Vision 2030, according to reports.
The country is looking to become a leader in the production of EVs, and has set a target of having 1 million EVs on the road by 2030. To achieve this goal, the government has established a number of initiatives and incentives to encourage the adoption of EVs, including the construction of charging infrastructure and the introduction of financial incentives for those who purchase EVs.
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.
