Hyundai and BAIC to launch joint venture in China
The two companies will each take 50% ownership stakes in their joint venture. This means that each party will inject about $548 million into the joint venture. With the fresh investment, the joint venture’s total registered capital will increase to $4.07 billion. The joint venture originally dates back to 2018, however,
The joint venture aims to launch products tailored to Chinese consumers including electric vehicles, smart technologies, and autonomous driving in 2025. Additionally, the Chinese publication Gasgoo writes that the joint venture will function as Hyundai Motor’s global export hub, with a production capacity of 500,000 units each year and 100,000 units reserved for export.
In 2023, Hyundai recorded more than 10,000 units of exports and attained 50,000 units this year from its Chinese operations.
Beijing Hyundai was initially founded in 2002. Since then, the joint venture has produced 42 models and attained cumulative sales exceeding 12 million units. In January, Hyundai and BAIC expressed their plan to establish a new electric vehicle brand for China. With the internal code name OE RE, the brand will be co-owned at 50 per cent each by Hyundai and BAIC and aims to offer affordable electric cars with LFP batteries.
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