Hyundai Motor Jan-Aug China sales up 78.2%

Shanghai, September 10 (Gasgoo.com) Hyundai Motor said yesterday that its sales in China rose 78.2% from a year earlier to 351,528 units in the first eight months, mainly thanks to stimulus measures by the Chinese government, media reported.

Most of the sales were achieved by Beijing Hyundai, the biggest Korean automaker's joint venture in China with Beijing Automotive Industry Holdings Co. (BAIC). The venture saw its August sales surge 208% to 50,713 units from last year's 16,467 units.

China sales of the locally-made Elantra Yuedong, which has either a 1.6 liter or a 1.8 liter engine, have been especially strong, said Noh Jae Man, president of Beijing Hyundai. Elantras with the smaller engine account for about 95% of the model's sales in China.

Hyundai Motor raised its China sales target for 2009 to more than 500,000 units. The company plans to sell locally-made new Sonata sedans and i30 compact cars in China later this year to further boost sales.

The Korean automaker benefited from rising sales of small vehicles in China as the Chinese government halved taxes to 5% on cars with an engine size of 1.6 liters or less to spur market demand.

Beijing Hyundai is considering building a third plant in China. The venture now has an annual production capacity of 500,000 units, which will rise to 600,000 units next year.

In addition to vehicles made by its joint venture, Hyundai also imports cars into China. Hyundai's affiliate Kia Motors also makes and sells vehicles in China via a local venture Dongfeng Yueda Kia.