Hyundai Motor and its Chinese partner BAIC Motor have agreed to invest nearly USD1.1 billion (about RM5 billion) in their Beijing Hyundai Motor joint venture. According to BAIC Motor, the capital injection will be conduced in instalments, with both parties continuing to have an equal stake in the company.
As reported by Reuters, the investment signals the South Korean automaker’s commitment to the world’s largest car market. This is despite Hyundai’s annual sales in China dropping to just 249,000 vehicles last year, which is almost one-fifth of the brand’s peak in 2016. In the first nine months this year, Beijing Hyundai sold 136,460 vehicles, nearly all being internal combustion engine cars.
Since Hyundai’s entry into China in 2002, the company has built five factories – three in Beijing, one in Changzhou and another in Chongqing. Earlier this year, the company sold its Chongqing plant while later in February, it was reported that the Changzhou plant was divesting key assets.
BAIC says the joint venture plans to use the fresh investment to develop and market more products tailored to Chinese consumer needs, as well as promote exports to international markets. At present, no electric vehicles (EVs) are listed on Beijing Hyundai’s website, although customers in China can buy the imported Ioniq 5 N through a separate Hyundai site.
Looking to sell your car? Sell it with Carro.
