April 23, 2024

• 

[THE INVESTOR] Hyundai Motor Group Vice Chairman Chung Eui-sun on July 19 attended the opening ceremony of the carmaker’s fifth auto facility in China. 

Established in southwestern city of Chongqing, the new plant, with an annual capacity of 300,000 units, will begin production in August. This year, Hyundai plans to roll out 30,000 units of compact vehicles initially and then expand the production, with aims to launch four new China-exclusive vehicles -- two compact sedans and two compact SUVs -- in 2019. 

‘The Chongqing facility is a smart, eco-friendly factory that is built in a city that is emerging as China’s future growth engine,” the heir-apparent said at the ceremony. “Hyundai, as a carmaker that caters to eastern and western China, will manufacture high-quality new cars for consumers.”

 

Hyundai Motor Group Vice Chairman Chung Eui-sun (center) visits the new assembly plant in Chongqing, China.

Chung was joined by Chongqing Mayor Zhang Guoqing, Vice Mayor Chen Luping, Ahn Sung-kook, Korean counsel general in Chengdu, and BAIC Group Chairman Xu Heyi at the unveiling event. 

Beijing Hyundai Motor, its 50:50 joint venture with BAIC Motor, has invested a combined US$1 billion to construct the facility starting 2015. Once the production is in full swing, Hyundai’s total output will be 1.65 million units annually in China, when adding the carmaker’s 1.35 million units at its four existing plants -- three in Beijing and one in Changzhou. 

The new plant arrives at a time when Hyundai is struggling from faltering sales in its biggest market, due to heightened political tension between Seoul and Beijing over the deployment of US-led THAAD missile system.
In June, Hyundai’s China sales plummeted 64 percent to 35,000 units from a year earlier while its sister firm Kia’s sales dropped 62 percent to 17,000 units.

Hyundai has been putting all-out efforts to win back Chinese customers. It recently formed a special task force team with Kia to come up with overall strategy to boost sales. 

The carmaker plans to roll out four new cars in China this year in the second half. It will debut the China-exclusive ix35 sport utility vehicle, as well as its new subcompact sedan Reina. 

Kia is set to launch K2 Cross, a crossover version of the K2 sedan, and the Pegas compact sedan. 

The carmaker recently hired Simon Loasby, head designer of Volkswagen Group China, to lead its design team in China. Hyundai hopes the China expert will develop localized models. 

Hyundai is also tying up with Chinese tech giant Baidu to develop a real-time navigation system Baidu MapAuto and Duer OS Auto, Baidu’s speed recognition digital assistant, with plans to launch a new car that is equipped with the two systems.

By Ahn Sung-mi (sahn@heraldcorp.com)