(CTN News) – A date for the start of construction of the plant is scheduled for 2024, and the start of production is scheduled for 2026. Hyundai estimates that the total amount of investment will be more than 500 million dollars, currently more than 472 million euros.
Approximately 70 per cent of the joint venture is owned by the PIF, while 30 per cent is owned by Hyundai. In spite of the minority shareholding and the manageable number of units in comparison to Hyundai standards,
Hyundai Motor Group has given its blessing to the project:
Euisun Chung, the chairman of the board of Hyundai Motor Group, signed the joint venture contract at the Saudi-Korean Business Forum, which was attended by high-ranking politicians from both countries.
At the moment, it is not clear from the current communication which electric models are going to be manufactured in Saudi Arabia, nor is there any mention of the exact location of the plant in Saudi Arabia.
There is an intention to localize production in Saudi Arabia in order to speed up the development of the country’s automotive and mobility ecosystem as well as attract further investment in the sector and the overall economy, however, the letter only mentions this in general terms.
A factory for the production of electric cars was opened by Lucid Motors in Saudi Arabia at the end of September. Since then, the Lucid Air has been manufactured in the King Abdullah Economic City facility using a semi-knocked-down assembly (SKD) method in a semi-knocked-down assembly process.
A traditional vehicle kit is manufactured at Lucid’s main plant located in Casa Grande, Arizona, and then sent to a third party for final assembly.
At this time, Hyundai has not commented on whether or not its cars will be manufactured using SKD technology or CKD technology as a part of its manufacturing process.
Only one thing that has been mentioned is the fact that there will be a high level of automation in the production of vehicles.