4th Hyundai plant in China
Hyundai Motor Co, South Korea’s leading automakers have revealed plans to set up their fourth car plant in China. This fourth car plant to come up Chongqing will allow the company to meet increased demand and expand their reach in the world’s largest car market.
This fourth Hyundai plant is in addition to Hyundai’s three existing plants in Beijing. It will have a capacity of 300,000 cars per year once completed, thus bringing Hyundai’s China output to a total of 1.51 million units. Sister unit Kia Motors also has three plants in Jiangsu Province where from a total of 740,000 units can be produced each year.
This 4th and upcoming plant, Hyundai’s first major overseas expansion in more than two years, is slated to commence production by 2016 and is being constructed at an investment of about 1 trillion won ($926.48 million).
Hyundai currently faces rising competition in China, competing with Toyota Motor Corp and Nissan Motor Co. The Korean automaker also competes with Volkswagen AG and General Motors. Rising demand in the auto industry is set to reach 20.06 million units by 2016 and it is with this in mind that Hyundai plans to increase production so as to keep pace with rivals. Hyundai currently produces 10 models in China which also includes the Langdong sedan and Santa Fe SUV.<