by Popularity of Hyundai and Kia in Saudi Arabia
Automotive brands Hyundai and Kia are approaching the point of overtaking Toyota as the most popular manufacturer in Saudi Arabia. This success may seem unexpected, but both companies are actively investing in the region, having recently begun construction of a new factory.
Sales Data and Competition
In the first half of 2025, Hyundai and Kia together sold 23% of the 412,920 cars sold in Saudi Arabia. This is only slightly less than Toyota, which holds a 28% market share. The Hyundai Accent sedan showed particular popularity—19,080 units were sold. For Kia, the sales leader was the Pegas sedan with 15,530 cars sold in the same period.
The presence of Chinese brands is also growing, collectively holding a 12% market share.
Strategic Importance of Saudi Arabia
Saudi Arabia is becoming an increasingly important market in the Middle East for automakers. The country holds a controlling stake in Lucid through its Public Investment Fund (PIF) and helped the American electric vehicle manufacturer open a local plant, whose capacity will eventually reach 150,000 cars per year. Similarly, Saudi Arabia is collaborating with Hyundai Motor Group.
Joint Venture and Future Plans
Thanks to a joint venture established between Hyundai Motor Manufacturing Middle East and PIF, which holds a 70% stake, a large production site will be opened in the fourth quarter of 2026. The plant’s capacity will be 50,000 cars per year, and it will produce both electric vehicles and internal combustion engine vehicles.
Hyundai has not yet specified which models will be manufactured at this plant, nor whether vehicles from the Kia and Genesis brands will be produced there.
These steps demonstrate how global automakers are adapting to regional markets by investing in local production and considering local needs. The success of Hyundai and Kia in Saudi Arabia could serve as an example for other brands seeking to strengthen their presence in strategically important regions.
