Hyundai Automotive Group is considering building a fourth car factory in China to tap into the fast-growing market, just five months after breaking ground at its third.
The company confirmed to South Korean media it was considering a new plant although timing and capacity has not been decided.
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Beijing Hyundai, a tie-up with state-owned Beijing Automotive Industry Holding (BAIC), started work on its third plant in China in November. The Hyundai and Kia brands have been gaining ground in China, the US and other major markets but limited capacity has kept the carmaker from expanding output to meet growing demand.
Recent reports suggest the group is mulling a second US plant for Hyundai, supplementing one opened in Alabama several years ago. Kia has a factory in Georgia.
Beijing Hyundai, China’s fourth-biggest carmaker, expected its China sales to be nearly flat at 720,000 units this year from last year, hampered by limited capacity. The third plant has an annual capacity of 400,000 units and will start production in 2012, increasing Hyundai’s total China capacity to 1m units.
Jaeman Noh, co-president of Hyundai Beijing, said during the Shanghai show that the Chinese new car market was projected to grow to 20m cars in 2015 and 30m in 2020, from 12.7m this year.
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