Beijing Hyundai to Build Fourth Plant in 2015

It’s been just three weeks since the inauguration of the Beijing Hyundai joint venture opened its third auto manufacturing plant in Beijing. Because of high demand, the South Korean-Chinese JV  now wants to open another plant by 2015, according to a statement made by Executive Vice General Manager, Li Feng, during an interview for NBD.com.cn.

The recently opened third plant in Shunyi offers a production capacity of 400,000 passenger cars per year, increasing Hyundai’s annual production capacity in China to one million units. The third factory is the most advanced and the largest  outside of South Korea. The new plant will be fully operational by 2012. The existing two plants, also located in Shunyi, have a combined capacity of 600,000 vehicles, but sales this year are expected to exceed 700,000 units.

Asked about the company's plans on high-end vehicles, Feng said sales of the high-end SUVs accounted for 16 percent of the total vehicle sales last year. The figure is likely to increase to around 26 percent this year and will hit 33 percent next year, indicating that the company has shifted its focus to the SUV and high-end vehicle markets from the family car market. Between 2011 and 2015 Hyundai are planning to launch 12 new models in the Chinese market, which will give their dealers a portfolio of 20 cars to sell. The new factory will no doubt go further to satisfy the demand for Hyundai vehicles.

Beijing Hyundai currently makes the Accent, i30, Verna, ix35 and Tucson models, and will release a new Sonata sedan next year, according to the company's vice president, Hsiu-Fu Wang. New models, including an SUV, will be added after the construction of Hyundai's third plant will be finished.