Hyundai is said to be trying to strengthen its position by collaborating with BAIC to establish a new electric vehicle brand specifically for the Chinese market.
This plan is being implemented to “boost” Hyundai’s sales in the populous market.
Accordingly, Hyundai and Beijing have joined forces to implement this plan with a 50-50 share ratio. The new brand of this joint venture is not yet officially named, only with the code name OE RE.
Previously, in June 2023, the Beijing Hyundai joint venture announced plans to introduce 5 electric car models in China in the next 3 years.
Hyundai Motor entered the Chinese market in 2002 and its sales peaked at over 1.13 million vehicles in 2016.
However, the brand has faced a decline in growth momentum due to deteriorating relations between South Korea and China. The unexpected outbreak of the COVID-19 pandemic further weakened Hyundai Motor’s presence in the Chinese market.
At its peak, Huyndai operated 5 factories in China, including 3 in Beijing, 1 in Tianjin and 1 in Chongqing. However, at the end of 2021, Huyndai sold one factory in Beijing.
At the end of 2023, Beijing Hyundai sold a factory in Chongqing for $225.2 million (5.48 trillion VND), less than half of the original amount, as part of a strategic change to reset its global sales strategy, focusing on profitable SUVs and luxury cars.
Beijing Hyundai has adjusted its sales strategy in the context of fierce price competition and slowing demand for cars in China. The joint venture is also planning to sell its factory in Tianjin. Ultimately, the Korean automaker plans to operate only 2 factories in China, optimizing production for export to emerging markets.
The collaboration with BAIC and the OE RE project demonstrates Hyundai’s determination to regain lost market share in China. With a focus on electric vehicles, Hyundai promises to bring new experiences to consumers and create a vibrant competition in this potential electric vehicle market.
TH (Tuoitrethudo)
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