As the South Korean automaker changes its strategy in China in the face of severe pricing competition and weakening demand, Beijing Hyundai Motor has listed its Chongqing facility for sale at a starting price of 3.68 billion yuan ($505 million).
According to a report on the China Beijing Equity Exchange that was posted on August 11, Beijing Hyundai is selling the equipment, other facilities, and land use rights associated with its facility in the city of Chongqing in the southwest of China.
With a 300,000 unit annual production capacity, the Chongqing plant—a joint venture with Beijing Automotive Group Co.—began production in 2017.
"Hyundai Motor has been pursuing various measures to improve sales performance in China. We plan to strengthen our efforts to improve profitability through optimising operation of our production lineups," a Hyundai Motor spokesperson told Reuters on Tuesday.
"As of now, buyers and schedule have not been decided," said the spokesperson.
After Hyundai announced in June that it would further restructure its China division to put a profitability-focused emphasis, the sale followed.
At its peak, Hyundai operated five factories in China; one of them was sold in 2021. It intends to eventually run just two, maximising production and using them for exports to developing markets.
In recent years, China, the world's largest auto market, has experienced a trend towards electric vehicles, which has resulted in a decline in vehicle sales for Hyundai and its subsidiary Kia.
Chinese industry data show that Tesla was the only international brand to grow its market share in China during the first half.
In July, China's passenger vehicle sales fell for a second consecutive month as a result of ongoing price competition and ineffective government action.
(Source:www.marketscreener.com)
According to a report on the China Beijing Equity Exchange that was posted on August 11, Beijing Hyundai is selling the equipment, other facilities, and land use rights associated with its facility in the city of Chongqing in the southwest of China.
With a 300,000 unit annual production capacity, the Chongqing plant—a joint venture with Beijing Automotive Group Co.—began production in 2017.
"Hyundai Motor has been pursuing various measures to improve sales performance in China. We plan to strengthen our efforts to improve profitability through optimising operation of our production lineups," a Hyundai Motor spokesperson told Reuters on Tuesday.
"As of now, buyers and schedule have not been decided," said the spokesperson.
After Hyundai announced in June that it would further restructure its China division to put a profitability-focused emphasis, the sale followed.
At its peak, Hyundai operated five factories in China; one of them was sold in 2021. It intends to eventually run just two, maximising production and using them for exports to developing markets.
In recent years, China, the world's largest auto market, has experienced a trend towards electric vehicles, which has resulted in a decline in vehicle sales for Hyundai and its subsidiary Kia.
Chinese industry data show that Tesla was the only international brand to grow its market share in China during the first half.
In July, China's passenger vehicle sales fell for a second consecutive month as a result of ongoing price competition and ineffective government action.
(Source:www.marketscreener.com)
