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Korean cars accounted for nearly nine percent of the auto market in China last year,...
the highest level ever. But they're aiming to expand their presence
there... even more... with Hyundai Motor announcing plans to build a fourth factory in China.
Our Song Ji-sun reports. Korea's two largest automakers logged a record 8-point-8 percent
market share in China last year. That consolidates the Hyundai-Kia Automotive
Group as the third biggest auto brand in China. It's a significant feat considering the Korean
auto group only entered the Chinese market around ten years ago.
Market leaders GM and Volkswagen have been in China for several decades.
But the goal is to land a 10 percent share in the Chinese market -- a figure that commonly
guarantees stable growth in the auto industry. To that end, Hyundai Motor is building a new
factory in China's midwest. Hyundai Motor and Chongqing, the biggest city
in the region... agreed Thursday to build their fourth local factory there.
That means additional production of 300-thousand cars a year.... and with Kia Motors' three
local factories... their combined production will now exceed 2-point-3 million cars a year.
Even so, the aggressive move was necessary... as China's market leaders, Germany's Volkswagen
Group and GM Motors of the U.S.... will both have a production capability of around 4-million
units by 2016. After recording over 20-million car sales
last year... the Chinese auto market is expected grow by 15 percent this year.
"China is the biggest and fastest growing auto market in the world with demand is expected
to reach 35-million cars by 2020. There's no other market of this size and momentum...
making it the most attractive and important market for all global automakers."
Korean automakers must also rev up research and development on green energy cars so they
abide by Beijing's regulations aimed at tackling the country's chronic pollution problem.
Song Ji-sun, Arirang News.