Beijing Hyundai Motor Cuts Asking Price for Chinese Auto Plant Amid Restructuring Efforts

Beijing Hyundai Motor, a joint venture between Hyundai Motor and Beijing Automotive Group Co, has reduced the minimum asking price for its auto plant in Chongqing, China. The price has been slashed by nearly 30%, from 3.68 billion yuan to 2.58 billion yuan ($353.38 million), as part of the company’s ongoing restructuring strategy in response to fierce price competition and a slowdown in demand.

The decision to sell the plant, which began production in 2017 with an annual capacity of 300,000 cars, follows Hyundai’s commitment in June to restructure its China business to prioritize profitability. With the aim of optimizing production for export to emerging markets, Hyundai plans to eventually operate only two plants in China, down from its peak of five.

The intensified rivalry in China’s automobile market, the world’s largest, has led automakers to compete aggressively on price amid weakening demand. However, U.S. automaker Tesla has stood out among foreign brands, significantly increasing its share of the domestic electric vehicle market from 7.5% in July to 13.2% in August.

Beijing Hyundai Motor has not yet identified a buyer or set a timeline for the sale of the plant. The company stated that it intends to enhance profitability through production rationalization but did not comment on the price reduction.

As Beijing Hyundai Motor continues its restructuring efforts, the sale of the Chongqing plant represents a strategic move to adapt to market conditions and focus on sustainable growth in China’s competitive automotive industry.