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Hyundai to Build Two New Plants in China

Motor Trend logo Motor Trend 12/30/2014 Kelly Pleskot

As its sales start to plateau in the U.S., Hyundai is looking to expand in the world's largest auto market. According to Reuters, Hyundai will start work on two new plants in China next year.

Research

The first factory, set to be located in Changzhou in the Hebei province, will start production on small vehicles by the second half of 2016 and should reach full capacity by 2018. The second plant in Chongqing will begin making small and mid-size vehicles during the first half of 2017. Each factory will be able to churn out an estimated 300,000 vehicles a year.

The new plants add to the three existing factories Hyundai operates in China. Currently, Hyundai holds a healthy 10-percent market share when combined with its sister brand Kia. By 2018, the companies hope to produce a combined 2.7 million passenger and commercial vehicles in China.

Hyundai had originally wanted to build just one new plant in China, but changed its plans when the Chinese government encouraged the automaker to build a second plant in Hebei as part of a development plan for the region.

2015 Hyundai Accent© Provided by MotorTrend 2015 Hyundai Accent

Building new plants is a big step for Hyundai, which just two years ago saw its Chairman Chung Mong-koo impose an unofficial ban on growing production capacity due to a number of quality scares. In mid-2013, Hyundai and Kia recalled around 1.8 million vehicles for faulty stop lamp switches in the U.S., and many more in its home country. But making the leap in China will help Hyundai keep up with the world's major automotive leaders like Volkswagen and General Motors despite a slowing economy, Reuters said.

Source: Reuters

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