South Korean car maker Hyundai is to set up a manufacturing facility in Saudi Arabia.
The proposed facility using the CKD (completely knocked down) route will be for production of electric cars and internal combustion engine cars.
The Korean conglomerate signed a memorandum of understanding (MoU) for its plans with the Saudi Ministry of Industry and Mineral Resources.
The MoU followed Hyundai showing interest to explore joint investment opportunities with Saudi Arabia to achieve entrepreneurship in businesses and projects that guarantee environmental safety and sustainability.
The Saudi national industry strategy seeks to localise the vehicle sector, besides increasing investment opportunities in the overall automobile sector.
Light car sales rates in the country are expected to increase by 2.2 percent during the upcoming decade. The MoU also aims to enhance cooperation in vehicle manufacturing in the region to realise the national strategic goals for industry in developing local manufacturing capabilities and in line with the targets of the Saudi Vision 2030 that seeks to diversify the economic base in the Kingdom of Saudi Arabia.
Follow us on
