Hyundai Motor plans to unveil a new battery-powered SUV in China in September, designed specifically for the local market. South Korea’s largest automaker is aiming for a strong sales rebound in the world’s largest market over the next two years, after its sharp decline over the last decade.

The new Elexio is the first of six localized EVs that are scheduled to be released by Hyundai in China in the next two years. The SUV was developed in collaboration with Hyundai’s main local joint venture, Beijing Hyundai Motor Company (BHMC), and is understood to be powered by batteries supplied by local automaker BYD.

News of the new Elexio emerged following the launch in early August of Hyundai’s second-generation Palisade flagship SUV in China, after the model was launched in South Korea earlier this year. The all-new Palisade offers greater horsepower and improved fuel efficiency compared with its predecessor.

Hyundai hopes that these two models will kick-start a long-term recovery in its Chinese fortunes after a decade in which its sales have plunged by almost 90%, initially due to a political spat between the South Korean and Chinese governments, and more recently as the automaker struggled to keep up with the market’s rapid transition to electric and hybrid vehicles.

BHMC’s factory sales for the local Chinese market plunged to 125,000 vehicles in 2024, from 244,000 units in the previous year. The company exported a further 45,000 units last year, up from just 445 units in 2023. This compares with Hyundai’s peak sales in China of around 1.2 million vehicles, in 2016.

Hyundai is expected to launch its second China-designed model, a battery-powered sedan, in the first half of next year.