South Korean based Hyundai on Tuesday announced it opened a $1 billion auto manufacturing plant with partner Beijing Automotive. The move could make China Hyundai’s biggest overseas market by 2010, overtaking the U.S. The two companies each hold a 50 percent stake in the venture, which should double production capacity in China to 600,000 vehicles. The plant is expected to produce 100,000 remodeled Elantras in 2008.
The Elantra will be the first new Chinese model in one-and-a-half years, and will sell for between an equivalent $14,250 and $18,540 there. Along with the first Hyundai Chinese manufacturing plant, Hyundai hopes to increase sales of its cars in the country to 380,000 in 2008, representing a 65 percent increase from last year, as per Automotive News.
Hyundai is planning on bringing more of its models to the world’s fastest growing car-market, hoping to capture 10 percent of the market together with affiliate Kia , or 1 million vehicle sales. The Genesis sedan should be introduced in China by June, of which Hyundai hopes to sell 1,500 of by the end of the year. On the other end of the spectrum, an economy car priced at between $5,000 and $6,000 and codenamed RB is said to be introduced by 2010.
