First Exclusive Meeting... Discussing Cooperation Plans for 'Vision 2030'
Inspection of New Local Plant Construction Site
Chung Euisun: "Saudi Production Base Marks a New Challenge in the Middle East"
Chung Euisun, Chairman of Hyundai Motor Group, visited Saudi Arabia and held his first exclusive meeting with Crown Prince Mohammed bin Salman to discuss future business cooperation.
As the largest economy in the Middle East, Saudi Arabia is pursuing a major transformation of its traditional energy-centered industrial structure into manufacturing and hydrogen energy through its 'Vision 2030' initiative. This is expected to further expand collaboration with Hyundai Motor Group.
On the 27th (local time), Chairman Chung met with Crown Prince Mohammed bin Salman at the Ritz-Carlton Hotel in Saudi Arabia, where they exchanged extensive views on the automotive industry and smart cities, Hyundai Motor Group announced on the 28th. While Chairman Chung and the Crown Prince had previously met twice-once during the Crown Prince's visit to Korea in 2022 and again during the presidential state visit in 2023-this was their first exclusive meeting.
Saudi Arabia, the largest automotive market in the Middle East, is working to strengthen its automotive industry by attracting global carmakers, with its sovereign wealth fund at the center of these efforts. The country aims to become an automotive hub not only for the Middle East but also for North Africa in the mid- to long-term. In May, Hyundai Motor Group established a joint venture (HMMME) with the Saudi sovereign wealth fund and is currently constructing a Hyundai Motor manufacturing plant. In addition, the group is actively expanding cooperation with key Saudi institutions and companies.
Chairman Chung expressed his gratitude to the Crown Prince for the Saudi government's continued interest and support for Hyundai Motor Group, and explained the ongoing collaborative projects and future plans as a partner in realizing Saudi Arabia's vision for the future. Crown Prince Mohammed bin Salman, who leads the national development project 'Vision 2030,' is a leader who enjoys strong support from the Saudi youth for his innovative and bold reform policies.
Chung Euisun, Chairman of Hyundai Motor Group (center), is listening to Park Wongyun, Head of Hyundai Motor Saudi Arabia Production Corporation (third from the right in the front row), about the progress of the new Saudi factory construction at the King Salman Automotive Industrial Complex in Saudi Arabia on the 26th (local time), while touring the factory. Hyundai Motor Company
Regarding the HMMME currently under construction, Chairman Chung stated, "We are building a locally customized plant equipped with specialized facilities to meet Saudi Arabia's industrial demand and customer needs," adding, "We will also consider expanding production capacity in the future, depending on market conditions."
The two leaders also exchanged views on 'Vision 2030.' Chairman Chung said, "We deeply understand the significance and importance of Vision 2030, and Hyundai Motor Group is participating in Saudi Arabia's giga-projects based on our competitive business capabilities." He also expressed expectations for expanding collaboration in the future energy sector, stating, "Hyundai Motor Group looks forward to multifaceted business cooperation in next-generation energy fields such as renewable energy, hydrogen, SMR (Small Modular Reactors), and nuclear power."
Before meeting the Crown Prince, Chairman Chung toured the HMMME new plant construction site located in the King Salman Automotive Industrial Complex on the 26th, where he discussed growth strategies with local executives and employees. Jose Munoz, President and COO of Hyundai Motor Company, accompanied him on this visit.
Encouraging local employees, Chairman Chung said, "Establishing a production base in Saudi Arabia marks a new challenge for Hyundai Motor in the Middle East," emphasizing, "We must thoroughly prepare in every area to deliver mobility solutions that exceed customer expectations on time, even in environments different from our previous bases, such as high temperatures and desert conditions."
President Munoz also commented, "HMMME is a symbolic site that demonstrates Hyundai Motor's long-term vision for Saudi Arabia, the largest automotive market in the Middle East," adding, "It will play a key role in our global mid- to long-term strategy and make a significant contribution to Vision 2030."
Hyundai Motor Group Chairman Chung Euisun (center) is encouraging employees at the construction site of the new Saudi factory within the King Salman Automotive Industrial Complex in Saudi Arabia on the 26th (local time). Hyundai Motor Company
HMMME, Hyundai Motor's first production base in the Middle East, is owned 30% by Hyundai Motor and 70% by the Saudi sovereign wealth fund. The plant is under construction with the goal of beginning operations in the fourth quarter of next year, and is expected to produce 50,000 electric and internal combustion vehicles annually.
Hyundai Motor aims to enhance brand favorability by establishing this production base, with the strategy of becoming the largest automotive company in Saudi Arabia in the future. Kia also plans to develop the recently launched Tasman as a flagship model and expand the supply of electric and hybrid vehicles. In addition, the group aims to take the lead in the PBV (Purpose Built Vehicle) market by linking with smart city projects.
Meanwhile, Hyundai Motor and Kia continue to achieve strong growth in Saudi Arabia. By September this year, they sold a total of 149,604 vehicles, an 8.5% increase compared to the same period last year. They plan to sell around 210,000 units by the end of the year, which would be 5.9% higher than the previous year.
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