Hyundai plan to build a third plant in China to meet demand in the world’s largest automobile market, Xinhua News reported today. The US$800m project will be built in Beijing, where the Korean company have a Chinese venture—Beijing Hyundai Motor—and is expected to be complete by the end of 2011, says venture president Noh Jae-Man.
The new facility will have the capacity to build 300,000 vehicles annually, most of which are expected to be larger than subcompacts. This will boost Beijing Hyundai’s production capacity by 50% to 900,000 units. BH aim to sell 670,000 cars next year, up 17% from a projected 570,000 in 2009. In the first 10 months, the company sold 460,590 vehicles, up 56% year on year. Their fuel-efficient vehicles win market share as economic growth and government incentives spur auto demand.
Hyundai are expanding their product range to meet the fast growing demand in China; in early August, BH launched the Sonata Molnca as an initial self-developed model, and a month later released the i30 small hatchback with 1.6- and 2-litre engines. Hyundai’s sister company Kia aim to sell 330,000 cars in China next year, up 43% from an estimated 230,000 in 2009. The two carmakers expect their combined China sales to rise 83% this year to 800,000 vehicles, and to reach 1 million next year.
