SOUTH KOREA: Hyundai considers new investment strategy in China
Hyundai Motor is considering a new investment strategy in mainland China involving two additional vehicle plants, according to media reports in South Korea.
The Chinese government has delayed approval of an investment proposal submitted by the South Korean car company last year and understood to involve a new car plant in the south-western city of Chongqing.
Hyundai so far has invested in three vehicle assembly plants in the Beijing area, in north-eastern China, which is where its local partner Beijing Automotive Industry Company (BAIC) is located. The carmaker, however, is keen to expand in the fast-growing regional markets further west.
Local reports have suggested that Hyundai is under pressure to set up its new production base in Hebei province, however, which is also in the north-east of the country.
In order to gain approval for its Chongqing joint venture proposal, Hyundai is understood to be prepared to invest also in an existing car plant in the Beijing area belonging to BAIC. Both plants would start operations in 2016 - depending on the how soon a new proposal is approved.