Hyundai Motor Co yesterday opened a new plant in Beijing with a total investment of 12 billion yuan (US$1.7 billion).
The factory will be able to build 200,000 units this year before lifting to 300,000 units by 2010, the company said in a statement yesterday.
When it is completed, South Koreas biggest car maker will have a doubled production capacity of 600,000 units in China with two manufacturing facilities run by Beijing Hyundai, and equally owned venture with Beijing Automotive Industry Holding Co.
Hyundai has been losing ground to rivals such as General Motors, Toyota and Volkswagen in China due to its aging models. It is also challenged by more price-competitive models offered by Chinese car makers.
Sales of Beijing Hyundai slumped 20 percent to 230,000 units last year, leading it to be squeezed out of the nations top 10 for the first time.
Yesterday, Beijing Hyundai also launched a revamped Elantra sedan, the first new model for 18 months, aiming to win back customers and boost its sales by 65 percent to 380,000 units this year.
The new Elantra, or Yuedong in Chinese, is equipped with either 1.6-liter or 1.8-liter engines and costs from 99,800 yuan to 129,800 yuan.
Beijing Hyundai aims to sell 100,000 Yuedongs this year. Hyundai said earlier it aims to take 10 percent market share in China along with its affiliate Kia Motors Corp by 2010, compared with just under five percent for last year.
It will start importing its Genesis luxury sedan into China in the first half of this year to take on BMW and Audi in the luxury segment.
It may also produce a new version of the Sonata sedan at the newly opened Beijing factory by the end of this year.
(Shanghai Daily April 9, 2008)
