Hyundai to build two new manufacturing plants in China

(December 31, 2014) SEOUL — Hyundai announced on Tuesday that it would build two factories in China, its first new manufacturing plants since 2012 as the South Korean automaker bets on growth in the world's biggest car market even as the economy slows.

Hyundai said the factories, which will start production in 2016 and 2017, would help it better compete with rivals including Volkswagen and General Motors. Affiliate Kia Motors Corp. also said it would expand capacity at one of its three Jiangsu province factories to up to 450,000 vehicles by 2016 from 300,000 now.

The automakers declined to give a value for the investments, but Hyundai said the factories — which would be capable of producing 300,000 vehicles each — would help it and Kia maintain their market share of over 10 percent in China.

The duo said they expect to have a combined China production capacity of 2.7 million passenger and commercial vehicles by 2018, compared with 1.95 million vehicles this year.

Hyundai currently has three factories in China.

Sources: Reuters, Automotive News