Beijing Hyundai to expand production capacity to 1.4m by 2015

Gasgoo.com (Shanghai October 24) - With its ninth anniversary having just passed, Beijing Hyundai has laid out their plan for the Twelfth Five-Year Guideline, a national economic directive lasting until 2015, the Beijing News reported today. The joint venture plans to expand its production capacity from 700,000 to 1.4 million units by the end of the guideline, while increasing the ratio of mid- to upper-class models from its current 26 percent to over 50 percent. Beijing Hyundai is also continuing its update the schedule for construction of its fourth factory.

BAIC Group President and Beijing Hyundai Board Chairman Xu Heyi detailed on the plan at an event held commemorating the joint venture's ninth anniversary. Beijing Hyundai will embark on two training programs to increase its core competitiveness. According to Mr. Xu, plans during this Five-Year Guideline will be more comprehensive than those from the last time.

Work on Beijing Hyundai's third factory, which begun last November, was essentially completed last week. The factory will officially begin production next year and be key in helping the JV reach its target annual production ability of one million vehicles. The factory will have a first-phase production capability of 300,000 vehicles and 200,000 engines, which will expand to 400,000 vehicles and 400,000 engines in the next phase. The JV has reportedly invested 6.5 billion yuan ($1.02b) into the 1.15 million square meter site. The factory will be the manufacturer's largest operation outside of its home country of Korea.

In its nine years operating in China, Beijing Hyundai has accumulated three million sales. This time period is referred to the joint venture's first development phase, which is approaching its end. In the upcoming second phase, the JV looks to increase its brand image and customer awareness.