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August 25, 2023

A Tale Of Two Plants: Hyundai To Sell China Assembly Plant, But Acquires A Former GM Factory In India

Hyundai is putting one of its Chinese assembly plants for sale as it seeks to reduce excessive capacity in the China. At the same time, it has acquired a former General Motors plant as it broadens its reach in India.

Beijing Hyundai Motor Co., Hyundai’s joint-venture with BAIC Motor is trying to put its assembly plant in Chongqing for sale for 3.68 billion yuan (USD 585 million).

The plant assembles the Reina, the last new vehicle offered by former Hyundai Philippine distributor, Hyundai Asia Resources, Inc., before its operations were formally taken over by Hyundai Motor Philippines a year ago.

Beijing Hyundai, which builds and markets Hyundai-badged passenger vehicles, launched the Chongqing plant in 2017, after its annual sales reached a record high of 1.14 million in the previous year.

The 7.7-billion-yuan factory, capable of producing 300,000 vehicles a year at full capacity, was Beijing Hyundai’s fifth production facility in China. It boosted the company’s annual capacity to 1.65 million.

With annual sales plunging to 502,000 in 2020, Beijing Hyundai started to cut production capacity. In 2021, it offloaded one of its three plants in Beijing to electric-vehicle-startup Li Auto.

In 2022, Beijing Hyundai deliveries shrank to around 260,000, according to the China Passenger Car Association.

In stark contrast, Hyundai has acquired the former General Motors Talegaon plant in Maharashtra, India.

Hyundai considers India is one of the world’s most promising automotive markets, with a population of more than 1.4 billion as of 2023. The country is currently considered one of the world’s top three automobile markets in terms of sales and aims to increase its electric vehicle sales to 30 percent of total car sales by 2030.

Hyundai Motor sold 552,511 vehicles in India last year, taking a 14.5 percent share, ranking second overall among automobile brands in India. This year, they have sold 346,711 vehicles so far, maintaining its second-largest share in the Indian market with a 14.6 percent share.

The former GM Talegaon plant currently has an annual production capacity of 130,000 units. Upon completion of the agreement, Hyundai plans to expand the annual production capacity to achieve its strategic goal in the market. The automaker has already enhanced its production capacity from 750,000 units to 820,000 units in the first half of this year, the capacity augmentation of the Talegaon plant will lay the foundation for Hyundai to produce around 1 million units a year in India.


  1. Just what samsung did, leaving china for india n vietnam. India now the biggest in terms of population n has a very promising market for businisses. apple n other companies now starting to have manufacturing plants in india To diversify from china.

    1. It's because China has embraced their EV cars. Hyundai can't fight BYD for EV sales.

  2. That new plant of Hyundai in India will be used to manufacture New Venue.
    Hyundai India is also suffering from sales slump as the i20,Aura,Alcazar,Tucson and New Verna aren't selling well that much as car buyers in India prefer the ones made by Maruti Suzuki,Tata and Mahindra.
    Creta,Venue and i10 Nios are the ones keeping Hyundai India alive.


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