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BEIJING (Reuters) – Beijing Hyundai Motor (OTC:) has put its Chongqing plant up on the market at a beginning worth of three.68 billion yuan ($505 million), because the South Korean automaker rejigs its technique in China amid fierce worth competitors and slowing demand.
Beijing Hyundai is promoting the land use rights, gear and different amenities belonging to its plant within the southwestern Chinese language metropolis of Chongqing, in keeping with a disclosure on the China Beijing Fairness Alternate that was printed on Aug. 11.
The Chongqing plant, a three way partnership with Beijing Automotive Group Co, began manufacturing in 2017 with an annual manufacturing capability of 300,000 models.
“Hyundai Motor has been pursuing numerous measures to enhance gross sales efficiency in China. We plan to strengthen our efforts to enhance profitability by optimising operation of our manufacturing lineups,” a Hyundai Motor spokesperson informed Reuters on Tuesday.
“As of now, consumers and schedule haven’t been determined,” stated the spokesperson.
The sale got here after Hyundai stated in June that it might additional restructure its China enterprise to deal with profitability.
Hyundai had 5 crops in China at its peak and bought certainly one of them in 2021. It plans to ultimately function simply two the place it’s going to optimize manufacturing and use for exports to rising markets.
Hyundai and its affiliate Kia have seen their car gross sales in China plunge over the previous few years amid a shift to electrical autos on the planet’s largest auto market.
Tesla (NASDAQ:) was the one overseas model to extend its market share in China within the first half, in keeping with Chinese language business information.
China’s passenger car gross sales contracted for a second month in July, because the continuation of a worth warfare and piecemeal authorities measures didn’t incentive customers.
($1 = 7.2942 renminbi)