The Hyundai Motor joint venture in China will start building its third plant in China early next year as its sales may soon exceed existing capacity, an company executive said on Wednesday.
The news came after Beijing Hyundai earlier this week said August sales surged 208% year on year to 50,713 units, year to date volume was up 78.2% to 350,000 units and profits were up 150%.
The original annual sales goal has now been hiked to over 550,000 vehicles for 2009.
“We have now decided to go ahead with the new plant in China to meet rapid sales growth here,” the unnamed executive told Reuters.
Construction starts early next year on the new plant which will add 300,000 more units of capacity.
The facility, expected to start operation by 2012, will increase the venture’s total annual capacity to 900,000 units the executive said.
No site has yet been selected and it may or may not be based in Beijing where the two existing facilities are located, the executive noted.