Hyundai breaks ground on 5th China plant with eye on western regions
Beijing Hyundai Motor Co. began construction on an assembly plant -- its fifth in China -- in the southwest city of Chongqing to ramp up local output of compact vehicles.
The $1 billion (6.2 billion yuan) factory will start production in 2017 and will assemble up to 300,000 vehicles a year. The plant will build a new C-segment model specifically developed for Chinese consumers and also an SUV, the company said.
Beijing Hyundai is the Korean automaker's joint venture with BAIC Motor Group Co., and the Chongqing plant is the partnership's first production site in western China.
"We will utilize this plant as a means to establish a stronger market presence in western China, accelerating our plan to become a leading automaker in all regions of China," Hyundai Vice Chairman Euisun Chung said in a statement.
In April, Beijing Hyundai started building its fourth Chinese assembly plant in Cangzhou, which is 200 kilometers south of Beijing. The Cangzhou factory also is scheduled to start production in 2017 with an annual capacity of 300,000 vehicles. Its first two products will be a compact sedan and an SUV.
Beijing Hyundai's three existing assembly plants are in Beijing. The three factories can build slightly more than 1 million vehicles each year.
Hyundai affiliate Kia Motors has a joint venture in China with Dongfeng Motor Corp. The partnership, Dongfeng Yueda Kia Automobile Co., operates three assembly plants that can build 800,000 units annually.
In the first four months of this year, Hyundai's China sales dipped 2 percent year on year to 374,467 vehicles, while Kia's China deliveries rose 4 percent to 227,155 vehicles, according to LMC Automotive.
Beijing Hyundai is the Korean automaker's joint venture with BAIC Motor Group Co., and the Chongqing plant is the partnership's first production site in western China.
"We will utilize this plant as a means to establish a stronger market presence in western China, accelerating our plan to become a leading automaker in all regions of China," Hyundai Vice Chairman Euisun Chung said in a statement.
In April, Beijing Hyundai started building its fourth Chinese assembly plant in Cangzhou, which is 200 kilometers south of Beijing. The Cangzhou factory also is scheduled to start production in 2017 with an annual capacity of 300,000 vehicles. Its first two products will be a compact sedan and an SUV.
Beijing Hyundai's three existing assembly plants are in Beijing. The three factories can build slightly more than 1 million vehicles each year.
Hyundai affiliate Kia Motors has a joint venture in China with Dongfeng Motor Corp. The partnership, Dongfeng Yueda Kia Automobile Co., operates three assembly plants that can build 800,000 units annually.
In the first four months of this year, Hyundai's China sales dipped 2 percent year on year to 374,467 vehicles, while Kia's China deliveries rose 4 percent to 227,155 vehicles, according to LMC Automotive.
