Hyundai Motor plans to set up 3rd plant in China

Shanghai, November 27 (Gasgoo.com) South Korea's biggest automaker Hyundai Motor plans to build a third plant in China to meet demand in the world's largest automobile market, Xinhua News reported today.

The $800 million project will be built in Beijing, where the Korean company has a Chinese venture Beijing Hyundai Motor, and is expected to be completed by the end of 2011, Noh Jae-man, president of the venture, said yesterday. The new facility will build cars larger than subcompacts, he added.

The new plant, with an annual capacity of 300,000 vehicles, will increase Beijing Hyundai's production capacity by 50% to 900,000 vehicles. The venture's current two plants are able to produce 600,000 cars a year, mainly the Elantra Yuedong and Elantra, which are two of China's top-selling sedans now.

Beijing Hyundai aims to sell 670,000 cars next year, up 17.5% from a projected 570,000 in 2009. In the first 10 months, the company sold 460,590 vehicles, up 56% year on year. Its fuel-efficient vehicles win market share as economic growth and government incentives spur auto demand.

Hyundai Motor is expanding its product line-up in China to meet the fast growing demand. In early August Beijing Hyundai launched Sonata Moinca as its first self-developed model, and a month later released the i30 small hatchback with 1.6- and 2-liter engines.

Kia Motors, Hyundai Motor's sister company, aims to sell 330,000 cars in China next year, up 43% from an estimated 230,000 in 2009. The two carmakers expect their combined China sales to rise 83% this year to 800,000 vehicles and to reach 1 million next year.