Hyundai Motor is investing $548 million (about 800 billion won) in Beijing Hyundai, its joint venture with its Chinese partner BAIC, to expand its footprint in China’s electric vehicle (EV) market. BAIC, one of China’s top five automakers, will match the investment, bringing the total investment to nearly $1.1 billion (1.6 trillion won). Hyundai plans to launch its first EV in China through Beijing Hyundai next year.
While Hyundai’s market share in China exceeded 6% in the 2010s, it has dropped to around 1% due to the THAAD dispute and increasing competition from local Chinese automakers. This investment marks Hyundai’s renewed efforts to regain market presence.
According to Hyundai, BAIC announced on Dec. 11 that it would jointly invest $1.096 billion in Beijing Hyundai. The Chinese automaker plans to introduce more products tailored to Chinese consumer demands and expand exports. BAIC also pledged to support Beijing Hyundai’s transition to electric vehicles and other technological advancements.
The decision to resume investment in China comes as the country’s role as the world’s largest EV market continues to grow. Before the THAAD incident in 2016, Hyundai operated five factories in China. However, after a sharp decline in sales, Hyundai sold its Beijing plant in 2021 and its Chongqing plant earlier this year. In 2023, Hyundai’s sales in China (around 240,000 units) were just one-fifth of its 2016 figures.
Hyundai plans to introduce its first EV in China next year and release five eco-friendly models, including hybrids, by 2026. At its CEO Investor Day in August, Hyundai set a target to begin mass production of 30,000 extended-range electric vehicles (EREVs) annually in China by late 2026.
China’s role as an export base for Hyundai is also growing. Between January and October of this year, Hyundai exported about 30,000 units of four models made in China. One of these models, the Sonata taxi, was imported to South Korea and began sales in April, marking Hyundai’s first sales of vehicles produced in China to the domestic market.
