Beijing Hyundai denies selling plant to Xiaomi

Beijing (Gasgoo)- Insiders of Beijing Hyundai stated that the rumored sale of the company’s second plant in Beijing to Xiaomi is false report, as the company has no such plans, a local media outlet reported. The rumor was also denied by Beijing Hyundai and Hyundai China.

the manufacture plant; photo credit: Beijing Hyundai

On September 8th, reports said that Hyundai Motor Group was considering putting up its No.2 Beijing plant for sale. It was a step forward in adjusting the group’s strategy in China, the largest auto market in the world. Sources pointed out that Hyundai Motor will be shifting its focus to EVs and luxury models to turn around its years of disappointing sales in China.

According to the reports, the biggest automaker in Korea was in talks with potential buyers for its second Beijing plant that produces the Sonata, the Avante, and the Tucson SUV. Potential buyers of the plant were several Chinese EV manufacturers, and Xiaomi, one of China’s tech giants and newcomers to automaking.

Xiaomi EV company has officially completed its business registration in September with headquarters located in Beijing, making the rumored purchase of the No.2 Beijing Hyundai plant more plausible.

In May, China’s EV startup, Li Auto, was reportedly reaching an agreement with Beijing Hyundai to take over Hyundai’s first Beijing plant.

The selling of Hyundai’s production plants was not unexpected, as the group’s market share continued to drop in China. Due to the surging demand for domestic brands’ cost-effective vehicles and European luxury models, Hyundai’s sales volume has taken a hit. Last year, the group’s China sales totaled 660,000 vehicles, half of the sales volume in 2016 (1.79 million vehicles), causing a $1.72 billion loss to the group, leading the group’s China market shares to decline to 3.5%.