Seoul: South Korea’s high carmaker Hyundai Motor has bought considered one of its crops in China as a part of a enterprise reorganisation technique on the planet’s largest auto market.
Beijing Hyundai Motor, Hyundai’s three way partnership with China’s Beijing BAIC Motor, bought the Chongqing plant to an industrial park developer based mostly within the central Chinese language metropolis for some 296 billion gained ($221 million) on the finish of final yr, based on Hyundai Motor.
The plant with an annual capability of 300,000 models went on-line in 2017, however was put up on the market in June final yr amid slowing demand, reviews Yonhap Information Company.
“Hyundai Motor is attempting to spice up enterprise effectivity in China and the sale is a part of its efforts to enhance profitability by means of the rationalisation of manufacturing,” an organization official stated.
Hyundai Motor, whose gross sales in China reached 1.14 million models in 2016, has been affected by slumping gross sales since 2017 over a diplomatic dispute between Seoul and Beijing over the deployment of a US anti-missile system in South Korea.
Hyundai Motor operated 5 crops in China at its peak however bought considered one of them, the number one Beijing plant, in 2021 within the wake of plunging demand. The corporate reportedly plans to promote its plant within the southern Chinese language metropolis of Changzhou in keeping with its enterprise reorganisation technique.
