Hyundai and Kia Are Approaching a Surprising Upset in Saudi Arabia | Carscoops

      The two Korean automakers are making significant waves in the Saudi market, with a new factory and increasing sales challenging Toyota's long-standing dominance.

      Models from Hyundai and Kia currently account for 23 percent of Saudi Arabia’s new car market. Hyundai's top-selling model in the region is the Accent, while Kia's is the Pegas sedan. Kia is set to introduce the Tasman pickup to the local market in the third quarter.

      Both Hyundai and Kia are getting closer to overtaking Toyota as the leading automotive brand in Saudi Arabia. The notable success of these brands in the local market may come as a surprise, especially as they are heavily investing in the Kingdom, even recently commencing construction on a new factory.

      In the first half of 2025, Hyundai and Kia collectively represented 23 percent of the 412,920 vehicles sold in Saudi Arabia, just behind Toyota, which had a 28 percent share of sales. The Hyundai Accent sedan is particularly favored in the country, with 19,080 units sold, while Kia's Pegas sedan has sold 15,530 units from January to June.

      Additionally, a growing presence of Chinese brands in Saudi Arabia has taken a share of 12 percent of total sales, as reported by Just Auto.

      Saudi Arabia is becoming increasingly crucial for car manufacturers in the Middle East. The Kingdom holds a majority stake in Lucid through its Public Investment Fund (PIF), which has aided the American EV company in establishing a local factory capable of producing up to 150,000 EVs annually. Similarly, Saudi Arabia has been actively attracting the Hyundai Motor Group.

      A new joint venture between Hyundai Motor Manufacturing Middle East and the Public Investment Fund, which controls 70 percent of the venture, will result in a major production facility scheduled to open in the fourth quarter of 2026. This factory will have an annual production capacity of 50,000 units, producing both EVs and traditional internal combustion engine vehicles.

      Hyundai has not yet announced which specific models will be produced at this facility or if it will also manufacture vehicles from its sister brands, Kia and Genesis.