Just a day after we broke the news of Ford’s plans to expand in China (see article) now it is the turn of Hyundai to follow suit.
The South Korean car manufacturer has started the construction of a third plant in the country in an effort to keep up with growing demand in the world’s largest automobile market.
A joint venture has been formed between Beijing Hyundai Motor Company and Beijing Automotive Industry Holding Company ahead of a ground-breaking ceremony on the 400,000unit/year plant in the Shunyi District of Beijing.
The plant should be completed by July, 2012, and will combine with its two existing plants to roll out as many as 300,000 units per year meaning Hyundai will be able to produce one million vehicles a year in the country.
Mong-Koo Chung, the chairman and CEO of Hyundai Motor Company, described it is an “important day” for the company and with expanded capacity it could be a leading passenger car maker in the industry.
Beijing Hyundai Motor Company now expects sales to exceed its target of 690,000 – well beyond its annual capacity of 600,000. Cumulative sales are also expected to surpass 2.5million units.
The third plant is expected to produce small and mid-size models specifically designed for the Chinese market.
