Hyundai announced their plans to go head-to-head with Toyota's Prius. (Photo : Reuters)
Beijing Hyundai Motor Co. is building its fifth China plant, located in the southwest city of Chongqing, as part of its effort in beefing up its presence in the local market. The firm also eyes to expand in the country's western regions.
The factory, worth $1 billion, will commence production in 2017 and is expected to assemble around 300,000 vehicles annually.
The company revealed that in the newest plant, an SUV and a new C-segment model specifically crafted for Chinese consumers will be built.
The Chongqing plant is the first production site in the western regions of China of Beijing Hyundai, which is the Korean automaker's venture with BAIC Motor Group Co.
"We will utilize this plant as a means to establish a stronger market presence in western China, accelerating our plan to become a leading automaker in all regions of China," Euisun Chung, Hyundai's vice chairman, stated.
In April this year, the partnership has also started the construction of its fourth assembly plant in Cangzhou, a city 200 kilometers south of the Chinese capital. The factory will also kick off its production in 2017.
The Cangzhou factory will have a compact sedan and an SUV as its first two products. It is also expected to have an annual capacity of 300,000 automobiles.
The first three assembly plants of Beijing Hyundai are all located in Beijing, building a little over one million vehicles per year.
Meanwhile, Kia Motors, a Hyundai affiliate, also has a joint venture with China's DongFeng Motor Corp. The partnership has three assembly plants building 800,000 units annually.
According to LMC Automotive, the China sales of Hyundai decreased by 2 percent for the first four months of 2015, while Kia's has increased by 4 percent.
