Hyundai Motor Group Intensifies Its Push into the High-Potential Middle East Market

Hyundai Motor Group is making a strong move to target the Middle East market, which is regarded as a land of endless growth potential.

On the 14th (local time), Hyundai Motor held the groundbreaking ceremony for its first factory in Saudi Arabia at the site of the Hyundai Motor Saudi Manufacturing Company (HMMME) in the King Salman Automotive Industrial Park. The company announced the event on the 15th.

HMMME is a joint venture in which Hyundai Motor holds a 30% stake, and the Saudi sovereign wealth fund holds 70%. The factory is set to produce a mix of electric and internal combustion engine vehicles, with an annual production capacity of 50,000 units, aiming to start operations in the fourth quarter of next year. Through this project, Hyundai plans to strengthen its mobility alliance with Saudi Arabia, which is focusing on growing its automotive industry as part of its Vision 2030, which aims for a future beyond oil.

Jang Jae-hoon, Vice Chairman of Hyundai Motor Group, stated, "This groundbreaking ceremony marks the beginning of a new era for both Hyundai and Saudi Arabia. It will lay the foundation for opening a new chapter in future mobility and technological innovation."

Yazed Al Humeid, Deputy Governor of the Saudi sovereign wealth fund, emphasized, "HMMME will be a key milestone in the development of the Saudi automotive industry. Through continued partnership with Hyundai, we will accelerate the growth of the mobility ecosystem."

Saudi Arabia is a strategic core base for Hyundai's Middle East market efforts. Last year, Hyundai sold 135,878 units in Saudi Arabia, an 8.7% increase compared to the previous year (120,029 units). In the first quarter of this year, Hyundai sold 35,000 units, marking a 25% increase over the same period last year (28,000 units). As of the first quarter, Hyundai's market share in Saudi Arabia stood at 16.1%, ranking second after Toyota (26%), with Kia in third place (8.3%). Hyundai aims to sell 140,000 units in Saudi Arabia this year.

Hyundai Motor Group Heightens Expectations for Middle East Market Growth

There is increasing optimism regarding Hyundai Motor's push into the growing Middle East market. Last year, Hyundai sold 227,000 units in the region, a 2% increase compared to the previous year. In the first quarter of this year, Hyundai sold 60,000 units, marking a 10.1% increase compared to the same period last year.

Hyundai, in collaboration with the Saudi Arabian sovereign wealth fund, plans to combine Hyundai's innovative manufacturing technologies with Saudi Arabia’s talent and infrastructure to establish the Hyundai Motor Saudi Manufacturing Company (HMMME) as a key hub to accelerate the growth and development of the Saudi mobility ecosystem.

Vice Chairman Jang Jae-hoon stated, "We hope that HMMME will contribute to Saudi Arabia’s Vision 2030 by fostering local talent with mobility technology development capabilities."

ChatGPT를 사용하여 번역한 기사입니다.