Hyundai Motor has appointed a new head of China operations in the hope of turning around its fortunes in the world's largest vehicle market.
The company's sales and those of sister company Kia Motors have plunged in China in recent months, since South Korea agreed to deploy the US-supplied Terminal High Altitude Area Defense system earlier this year.
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In the first six months of 2017, Hyundai's sales were down by over 42% at 301,000 units, with deliveries diving by over 60% in May and June amid calls for a consumer boycott of South Korean products.
Hyundai sold 1.15m vehicles in China last year and a further 650,000 units were sold by Kia Motors, equivalent to over 20% of global sales, so there is a lot a stake in this market for the two South Korean carmakers.
Hyundai has just completed construction of a fifth plant, in Chongqing, bringing the brand's production capacity in China to around 1.6m units per year.
The company hopes the appointment of Tao Hung Than, who replaced the outgoing Chang Won-shin earlier this week, will help stabilise its China operations at such a critical time.
In the last two weeks Hyundai was forced to stop production in China for a week after a supplier of fuel tanks halted deliveries due to payment arrears.
Tao was fundamental to Hyundai's entry into China, according to local reports, and it is hoped that he will be able to help reverse course before things get much worse.
