Hyundai and BAIC's Billion-Dollar Bet in China's Car Market

Hyundai Motor and BAIC Motor will invest $1.1 billion in their joint venture, Beijing Hyundai, to reinforce their presence in China's auto market. Despite declining sales and market share loss, Hyundai plans to introduce products tailored to Chinese needs and expand exports.

In a major financial move, Hyundai Motor and its Chinese partner, BAIC Motor, have announced a $1.1 billion investment in their joint venture in China. This decision highlights the South Korean automaker's dedication to sustaining its presence in the world's largest automotive market despite recent sales declines.

Once a dominant player, Hyundai has witnessed a significant drop in its annual sales figures in China, falling to only 249,000 vehicles last year. This is a stark contrast to the brand's peak year in 2016. The joint venture, Beijing Hyundai, has already shut down two of its four manufacturing plants in the country due to these challenges.

The newly announced investment will boost the venture's total registered capital to over $4 billion. Signifying a renewed strategy, the companies plan to introduce more products tailored to the preferences of Chinese consumers and ramp up exports to global markets.

(With inputs from agencies.)