Hyundai Motor May Build 3rd Plant in China

Automaker strives to strengthen its presence in the growing Chinese market

Hyundai Motor intends to build a third plant with an annual output of 300,000 units, as orders for automobiles produced by the first and second Chinese plants of Korea’s biggest automaker, with a combined capacity of 600,000 units, are overflowing.
Hyundai Motor Chairman Chung Mong-koo disclosed his intention to build Hyundai Motor’s third plant while meeting reporters in China on Nov. 12.
Chung told Hyundai Motor officials in China that Hyundai Motor has so far done a good job, but it is not sufficient to maintain the status quo, and unique and differentiated regional marketing should be developed to establish it as China’s representative brand.
Later in the day, Chung met with Chairman of the People’s Political Consultative Conference of China Jia Qinglin and explained his group’s role in promoting a business partnership between China and Korea and asked for the full support of the Chinese government.
In return, Jia was quoted as saying that Hyundai Kia Automotive Group is the most successful case among foreign investors in China and the pride of Beijing citizens and he expressed his hope that the group will be a representative company of the Chinese automobile industry and a symbol for promoting economic development and cooperation between Korea and China.
Global automakers are scurrying to expand their production capacity in order to acquire a larger share in the ballooning Chinese automobile market, as automobiles sold in China surpassed the 10-million-unit barrier in October. Hyundai Kia Automotive Group, which is accelerating its bid to strengthen its presence, is expected to stage a fierce battle against other global automakers, which are moving into small- and mid-sized cities in the western region with expanded production capacity.
Toyota plans to raise its production capacity in China to 1.02 million units by 2013. In an effort to meet an expansion in demand in the central and western regions, Toyota plans to expand the capacity of its factory in Sichuan from the current 10,000 units to 30,000 units and the capacity of its plant in Changchun from the current 10,000 units to 200,000 units by 2010.
Honda said it will increase its production capacity from the current 580,000 units to 650,000 units next year. The Japanese automaker plans to raise the capacity of a plant in Wuhan, a key city of the central and western region, from the current 200,000 units to 240,000 units. It is also planning to break ground on a project to build a second plant with a capacity of 240,000 units under its mid-term plan.
General Motors plans to boost its production capacity from the current 1.66 million units to 1.72 million units. Volkswagen plans to raise the capacity of its Nanking plant and Chengdu factory to 300,000 units and 350,000 units, respectively.
Santa Fe’s Worldwide Cumulative Sales Reach 2 Mln Units
Hyundai Motor Company’s mid-size SUV model, the Santa Fe, reached cumulative sales of 2 million units worldwide.
The landmark 2-million-unit sales mark ― including 500,000 units in the Korean domestic market ― testifies to the high-quality and leading style of the versatile SUV, solidifying its position as the global leader in the segment.
If the cars were lined up bumper to bumper, they would stretch from Seoul to Korea’s second biggest city, Busan, and back for five and a half round trips (overall length 4,675 km). If the cars were stacked up (overall height 1,725 km), the 2 million units would be 390 times the height of Mount Everest (8,848 m).
Since its launch in June 2000, the Santa Fe has gained steady popularity as a new concept SUV combining the driving comfort of a sedan and the safety of an SUV while providing the spacious interior found in minivans.
With the launch of a gasoline model last August and an LPI model in September, Santa Fe now has a complete lineup of engines, satisfying the diverse needs of consumers. In addition, it has received numerous awards and accolades from various reputable rating agencies including the Top Safety Pick from the Insurance Institute for Highway Safety (2008) and Strategic Vision’s Total Quality Award (2008). nw

Hyundai-Kia Automotive Group Chairman Chung Mong-koo takes a look at an assembly line in China.