Hyundai and Kia Dominate as Top-Selling Cars in Saudi Arabia for H1

Key Takeaways

Hyundai Accent and Kia Pegas are the top-selling subcompact cars in Saudi Arabia for H1 2023.
Hyundai Motor Group ranks second and third in total sales, nearing Toyota’s market lead.
A new Hyundai manufacturing plant, set to produce vehicles by Q4 2026, will strengthen its presence in the region.

Hyundai and Kia Dominate Saudi Car Market

Hyundai Motor Co. and Kia Corp. have emerged as frontrunners in Saudi Arabia’s automobile market during the first half of 2023, driven by their expanded offerings of subcompact models. The Hyundai Accent topped the sales charts with 19,081 units sold, closely followed by the Kia Pegas at 15,528 units. Hyundai Motor Group, comprising both brands, secured second and third positions in overall sales within the country, achieving total sales of 96,159 units. Toyota Motor Corp. maintained its lead with 118,022 vehicles sold in the same timeframe.

Saudi Arabia stands as the largest automobile market in the Middle East, accounting for one-third of regional sales. Predictions indicate that 840,000 vehicles will be sold in the kingdom by 2024, part of a larger regional total of approximately 2.49 million units.

In a strategic move to strengthen its presence in the Middle East, Hyundai is set to establish its first manufacturing facility in the region, named Hyundai Motor Manufacturing Middle East (HMMME). This plant will be located in the King Salman Industrial Complex and will employ a complete knock-down (CKD) method to assemble imported parts. Expected to produce up to 50,000 internal combustion and electric vehicles annually, the facility is backed by Saudi Arabia’s Public Investment Fund (PIF) and aims to commence production by the fourth quarter of 2026.

Hyundai Motor Group plans to broaden its impact in the Middle East, venturing into hydrogen and other energy sectors in partnership with the PIF. This initiative underlines Hyundai’s commitment to reorienting its operational strategy in line with local demand while also focusing on the rapid evolution of the automotive industry in the region. The upcoming plant is anticipated to significantly bolster Hyundai’s market position and diversify its offerings beyond just traditional vehicles.

Overall, these developments reflect Hyundai’s strategic focus on adapting to local preferences and expanding its footprint in one of the most promising automotive markets globally.

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