Chairman Chung Mong-koo is visiting Beijing as part of the entourage of South Korean President Roh Moo-hyun.

The joint venture was launched last year by Hyundai and the Beijing Automotive Holdings Corp. Each of the parent firms holds a 50 percent stake in the joint venture.

"We have made and are implementing a long-term investment and production plan for the joint venture," Chung said.

The joint venture's annual production capacity will increase to 200,000 units by 2006 and to 550,000 units by 2010, Chung predicted.

"Our products will be more competitive in China than those from other countries as South Korea and China not only have excellent professionals and technologies but have similar cultural backgrounds," he said.

"China is the world's fastest-growing car market. And the market volume will grow to 8 million units within the next five year," he added.

The market is expected to exceed 4 million units this year.

The joint venture started operations at the end of last year. It sold 21,000 Sonata sedans during the first half of this year.

The joint venture's sales target for this year is 50,000 units worth US$1 billion.

The joint venture will introduce Hyundai's Elantra small cars later this year.

Kia Motors, an affiliate of Hyundai, has a joint venture in East China's Jiangsu Province with the Dongfeng Motor Corp -- one of China's biggest car makers -- and the Yueda Automobile Group, a smaller local partner.

The three-party joint venture produces Kia compact cars.

Hyundai also has a sport utility vehicle licensing production project with China's Huatai Automobile Co in East China's Shandong Province.

(China Daily July 8, 2003)