Hyundai Motor Co., South Korea’s top automaker, said Wednesday that it is reviewing an option to suspend one of its five plants in China to counter a slump in its sales in the world’s largest auto market.
“We are reviewing a set of measures for plant operations in China to stay competitive and secure profitability,” Hyundai Motor said in a statement.
The automaker said it is considering the suspension of one of its three plants in Beijing. The plant can produce up to 300,000 units annually.
Beijing Hyundai Motor Co., a joint venture set up between Hyundai Motor and BAIC Motor Corp. in 2002, operates five plants in China, with an annual output capacity of 1.65 million units.
The automaker did not fix the date for the operation suspension, but it could take place next month, industry sources said.
Beijing Hyundai has been suffering a decline in sales in the face of a diplomatic row between South Korea and China and growing competition with Chinese and foreign rivals.
Its sales reached some 790,000 units last year, down from 820,000 units in 2017.
The automaker has been making inroads into Southeast Asia and other emerging markets.
In January this year, Hyundai Motor said it will set up a joint venture with a Vietnamese company to boost sales in the emerging market. (Yonhap)
Source : koreaherald