Hyundai Plans to open two new factories in China

South Korean Motor Company Hyundai Plan to open two new factories in china to produce more environmentally friendly vehicles and models

South Koreas Hyundai Motor Co has said that two new factories in China will be targeted at the worlds largest automotive market and more eco-friendly vehicles and models. The automaker is trying to avoid rising competition from its Chinese competitors. Hyundai said in a statement on Tuesday that it has completed its fourth Chinese plant in Kangzhou, Hebei Province, and will open another in Chongqing next year. Combining two plants with an annual production capacity of 300,000 will increase the total number of vehicles manufactured in China, the largest market in China, to 1.81 million per year. Focusing on green cars is part of a new Hyundai strategy for China. Kia Motors, the third largest car maker in China, reported 8.9 per cent decline in its vehicle sales last year. The seven-year low was 10.4% last year, as Chinese rivals attracted consumers. Hyundai said the launch of the Kangxou factory would accelerate efforts to gain more than 10 percent market share. It has not revealed how much it will invest in new plants. If we consider Kia 890,000 capacity, the South Korean duo will have a total production capacity of 2.7 million in China. Hyundai said it expects to produce nine green vehicles in China by 2020, with a target of 10 percent of the countrys sales that year, to meet fuel economy conditions and compete with Chinese automakers. The automaker said the new plants will produce different sized models to compete with Chinese competitors at a lower cost. As part of the new strategy, China will increase the number of dealerships to 1,400 by 2020. It also plans to secure dealers in the Southwest and smaller cities.