Hyundai to make Green cars to fend off Competition in China
Hyundai Motor Co has completed a manufacturing plant in China, and will add another plant next year. Hyundai motors announced that both plants would be used to manufacture only environmentally friendly cars. The focus on green cars is part of a new strategy by South Korean car manufacturer to fend off increasing competition in the lucrative Chinese market.
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Hyundai said in a statement on Tuesday that it has just completed the work on its new plant in Cangzhou, a town in the Hebei province. This is Hyundai's fourth manufacturing unit in the Hebei province. The statement also revealed that another plant is scheduled to start operations in Chongqing next year.
The two new plants will add 300,000 cars to Hyundai's production capacity in China, taking the annual car production to approximately 1.81 million.
The South Korean auto giant hopes that focus on green cars will revive its fortunes in China, which has the largest foreign market. The company has been struggling with its market share falling to a seven year low of 8.9 percent last year. Hyundai and its affiliate KIA Motors currently rank third in the China's car market.
"We will accelerate our efforts to achieve a market share of more than 10 percent again with the opening of Cangzhou factory," Hyundai said in a statement.
It added that the two new units will manufacture models of different sizes to compete with the low-cost Chinese rivals in green cars segment.
Hyundai is hoping to make substantial gain in the green cars segment by 2020. It's main focus is on meeting the fuel economic regulations and increasing car dealerships across China in the stipulated time.