S. Korean auto maker plans mini for China

South Korea's Hyundai Motor Co said yesterday it plans to launch a low-priced mini car in China by 2010 to increase its market share, according to Xinhua news agency.

South Korea's biggest car maker will sell the sub compact model between US$4,800 to US$5,300, Xinhua reported yesterday, citing a Hyundai official.

The model, which is still in the research and development phase, will be assembled in the second plant of Hyundai's joint venture in Beijing. Production will start in 2008 with a designed capacity of 300,000 units annually, Xinhua added.

"The smaller cars could help the car maker to complete its portfolio rather than increase slowing sales in China as the compact car sector generally grows at a moderate pace," Yale Zhang, auto analyst at CSM Asia Corp, told Shanghai Daily yesterday.

Sales of Beijing Hyundai Automobile Co Ltd rose 11.8 percent to 261,800 units last year compared with an industry average of 37 percent growth.

Hyundai, which produces Elantra, Sonata, Accent and NF sedans in China, has a 12 percent market share and it plans to sell one million units in China by 2010.