Hyundai Motor said it is in the process of raising its stake in its Turkish manufacturing subsidiary ahead of plans to invest in electric vehicle production, according to reports in South Korea.
Hyundai currently has a 70% stake in the Izmit-based Hyundai Assan Otomotiv joint venture, which has a production capacity of 230,000 vehicles per year. Its local partner Kibar Holding owns the remaining 30% of the equity.
The South Korean automaker is said to have submitted documents to the Turkish authorities earlier this month to acquire a further 27% stake in the manufacturing plant, leaving its local partner with just 3% of the equity.
The plant produces sub-compact car models such as the i10 and i20, which are mostly exported to markets in Europe. Hyundai plans to invest EUR170m in the facility to help it meet growing demand for electric vehicles in Europe and elsewhere.
From 2030 Hyundai plans to progressively shift its plants that supply the Europe, China and the USA to EV production, as demand for zero-emission vehicles set to soar – driven by government policies to reduce carbon dioxide emissions. The automaker has said it will keep a reduced level of internal combustion engine (ICE) vehicle production capacity in emerging markets such as India and Russia after 2030.