Saudi drivers have spoken—and they’re choosing smart, affordable subcompact sedans. Leveraging a localized strategy that expands small-sedan lineups, Hyundai Motor Co. and Kia Corp. captured the top two spots in the kingdom during the first half of the year, signaling a decisive shift in one of the region’s most influential auto markets.
Compact Leaders Take the Crown
Hyundai Motor Co. and Kia Corp. have nailed Saudi drivers’ tastes with a laser focus on subcompact sedans. In the first half of this year, their small-car strategy delivered a one–two finish in the kingdom’s sales charts, reflecting a broader, localized push to expand lineups that fit everyday needs and budgets. The Hyundai Accent was Saudi Arabia’s best-selling car from January to June, moving 19,081 units. Close behind, the Kia Pegas secured second place with 15,528 units sold.
By brand, the two South Korean nameplates under Hyundai Motor Group ranked second and third in overall Saudi sales—evidence that their coordinated approach is gaining real traction among local buyers. The momentum also shows up in the group’s cumulative performance: Hyundai Motor Group sold 96,159 vehicles in the country during the first half, steadily closing the gap with market leader Toyota Motor Corp., which recorded 118,022 units over the same period.
Saudi Market Scale—and Why It Matters
Saudi Arabia is the largest automobile market in the Middle East, a bellwether for regional trends and competition. In 2024, the kingdom accounted for 840,000 vehicle sales, roughly one-third of the Middle East’s 2.49 million total. Winning here isn’t just a quarterly trophy; it shapes brand visibility, dealer strength, and future model planning across the region.
To deepen its Middle East presence, Hyundai Motor is building its first regional manufacturing plant—Hyundai Motor Manufacturing Middle East (HMMME)—inside the King Salman Industrial Complex in Saudi Arabia. The facility will assemble imported parts using the complete knock-down (CKD) method and is designed to produce up to 50,000 vehicles annually, spanning both internal-combustion and electric models. Backed by Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), the plant is slated to begin production in Q4 2026.
Hyundai Motor Group’s plans extend beyond automobiles. In collaboration with PIF, the group aims to broaden its regional footprint into hydrogen and other energy sectors. This expansion pairs the kingdom’s long-term energy ambitions with Hyundai’s technology and manufacturing scale.
Hyundai and Kia’s targeted bet on subcompact sedans—led by the Accent and Pegas—has paid off in the Gulf’s most influential market. With local manufacturing on the horizon and new energy collaborations taking shape, the South Korean duo isn’t just selling more cars; they’re building a durable, Saudi-anchored platform for long-term growth across the Middle East.
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