April 20, 2024

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[THE INVESTOR] Hyundai Motor has replaced the head of its Chinese unit amid plunging sales, largely due to heightened geopolitical tensions between Seoul and Beijing. 

The Korean auto giant named Tao Hung Than as the new president of Beijing Hyundai, a joint venture with Beijing Automotive, replacing Chang Won-shin, effective Sept. 4. 

Chang, who resumed the top China job last October, will return to the headquarters in Seoul. 

Tao is known as an expert of the Chinese market and played a crucial role in expanding Hyundai’s business in the country. He previously helmed Beijing Hyundai in 2010. Since 2016, he has served as vice president overseeing the Chinese business at the Seoul headquarters.

The reshuffle came as Korea’s largest carmaker has been hit with continued sales decline in China due to a consumer backlash after Seoul’s plans to deploy a US missile defense system THAAD. 

China sales of Hyundai in the second quarter slumped 64 percent to 105,000 units, showing no immediate signs of recovery. 

Hyundai recently was forced to halt operations at four plants in China plants due to a dispute with its key parts supplier. The factories are now fully operating, but the carmaker is still in talks with the supplier to resolve the issue.

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