Hyundai has won approval to open its first factory in China, the world’s fastest-growing car market, as Toyota rolls out the VIOS – its first passenger vehicle made in that country.
Hyundai has won approval to open its first factory in China, the world’s fastest-growing car market, as Toyota rolls out the VIOS – its first passenger vehicle made in that country.
The Chinese car market is expected to see car sales grow by 40 per cent this year to one million units and Hyundai, South Korea’s leading car manufacturer, will build Sonatas and Elantras at a plant near Beijing by the end of the year – building around 30 000 cars next year and 200 000 per annum by 2005, with plans to make 500 000 annually by 2010.
China recently entered the World Trade Organisation, which means that it will have to scrap restrictions on joint-ventures between local firms and foreign companies during the next two years. Hyundai’s plant has been built in a joint venture with local car manufacturer Beijing Automotive Industry Holding.
Ten per cent owned by DaimlerChrysler, Hyundai’s growth plans have been buoyed by the recent announcement that it plans to jointly develop and buy parts with DaimlerChrysler.
Meanwhile, Volkswagen AG faces a fierce challenge to its almost 20-year rule over China’s car market. Toyota recently signed a deal with major Chinese automotive manufacturer, First Automotive Works (FAW), to build 300 000 to 400 000 cars by 2010.
This week, Tianjin Toyota started producing the VIOS – the first Toyota-brand passenger vehicle ever built in China. Tianjin Toyota hopes to sell 30 000 units a year.
“We have much confidence in the VIOS, which features Toyota’s most-advanced technologies,” said Toyota Motor Company president, Fujio Cho.
Analysts believe China’s automotive market could be as large as that of the US within 25 years and various manufacturers are vying for a stronger foothold in the Asian country.
General Motors, Honda and PSA Peugeot, for instance, all have plants in China. About 2,35 million cars, buses and trucks were sold in China in 2001, up 12,7 per cent from a year earlier.
The world’s second largest manufacturer, Ford, plans to build the Ikon, which is available on the South African market, at an assembly plant in Chongqing from next year.
Nissan announced last month that it was to invest more than R10 billion in a joint venture with Chinese firm Dongfeng to manufacture commercial and private vehicles in China from next year.
As CARtoday.com reported in August, Mazda has launched its “323” small passenger car in China to boost its presence in the country. The vehicle, known as the Faimilia in Japan, will be made by Chinese company FAW Hainan Motor, but will be sold under the Mazda brand.
The BMW Group received approval to enter the China car market in a joint venture with Chinese manufacturer Brilliance.
