Beijing Hyundai Motor Cuts Asking Price for Chongqing Plant by Almost 30%
Beijing Hyundai Motor, a joint venture between South Korea’s Hyundai Motor and Beijing Automotive Group Co, has reduced the minimum asking price for its auto plant in Chongqing, China. The price has been cut by almost 30% to 2.58 billion yuan ($353.38 million) after the plant was put up for sale in August. The decision to sell the plant comes as Hyundai restructures its China business to focus on profitability amidst fierce price competition and slowing demand.
The Chongqing plant, which began production in 2017 with an annual capacity of 300,000 cars, is now being sold along with the land use rights, equipment, and other facilities. The original asking price was 3.68 billion yuan, but the reason for the reduction was not disclosed in the filing.
Hyundai’s move to streamline its operations in China follows the sale of one of its five plants in 2021. The company plans to operate just two plants in the future, optimizing production and using them for exports to emerging markets.
The Chinese automobile market, the world’s largest, has seen intensified rivalries among automakers due to weakening demand and deepening price competition. However, Tesla has stood out among foreign brands, with its share of China’s electric vehicle market nearly doubling in August.
While Beijing Hyundai Motor adjusts its strategy in China, the company continues to focus on delivering high-quality vehicles and meeting the evolving needs of customers.