2024-01-16 11:32:00
Hyundai Motor Company’s headquarters in Yangjae-dong, Seocho-gu, Seoul. 2021.1.26 News 1
Hyundai Motor Company sold its Chongqing factory (Factory 5) in China for approximately 300 billion won. Hyundai Motor Company, which is planning to operate two Chinese factories to improve production and management efficiency, first sold its first factory in Beijing at the end of last year. As a result, the number of local Hyundai Motors factories, which had once increased to five following entering China in 2002, has decreased to three. Currently, Hyundai Motor Company is also pursuing the sale of its fourth plant, Changzhou Plant.
According to the industry on the 16th, Hyundai Motor Company’s Chinese joint venture ‘Beijing Hyundai’ sold its Chongqing factory for 1.62 billion yuan (regarding 300 billion won) to ‘Yupu Industrial Complex Construction Co., Ltd.’ located in Chongqing at the end of last year. The factory has an annual production capacity of 300,000 units, and it has been six years since it was completed in 2017. Beijing Hyundai put the Chongqing factory land use rights and production facilities up for sale in August last year.
This sale is expected to speed up the reorganization of Hyundai Motor Company’s business in China. Hyundai Motor Company’s struggles in China began in 2016 when China took large-scale retaliatory measures once morest Korea’s deployment of the Terminal High Altitude Area Defense (THAAD) missile defense system. Hyundai Motor Company and Kia Motors, which recorded the highest annual sales volume in the Chinese market with 1.792 million units in 2016, have seen their local market share fall to the 1% range from 2022.
A Hyundai Motor official explained, “Hyundai Motors is pursuing business efficiency in various ways to improve its business structure in China,” adding, “The sale of the Chongqing plant is also part of efforts to increase profitability through rationalization of production operations.”
Reporter Kim Jae-hyung [email protected]
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