Hyundai Motor to Build 5th Plant in Chongqing, China

Hyundai Motor will build a new auto plant in Chongqing, China.

The company announced on June 18 that it would hold a groundbreaking ceremony for its fifth plant in Chongqing City, China, on June 23.

The Chongqing plant will have an annual production capacity of 300,000 vehicles and be established in Liangjiang New Area, a state-level new economic development area, in Chongqing City. Built on a 2 million square meter site, the plant will have 274,000 square meters of floor space, featuring complete vehicle and engine production facilities including press work, body work, painting, and design. When completed in 2017, the new plant will mass produce small and mid-size models specifically designed for the Chinese market.

Hyundai Motor is building the plant in Chongqing in order to strengthen its strategy to target the central and western region in China. With a population of 30 million and 83 percent of the size of Korea, Chongqing City has witnessed an average two-digit growth rate. It is considered to be one of the most important bases for development in mainland China. In a bid to put up the plant in Chongqing, Hyundai Motor Group Chairman Chung Mong-koo has accepted the Chinese government’s request and built its fourth plant in Cangzhou, Hebei province.

Once the fourth plant in Cangzhou and the fifth plant in Chongqing are completed in 2017, the carmaker's annual production will be pushed up to a total of 2.6 million units in China – 1.71 million units of Hyundai Motor and 890,000 units of Kia Motors, rivaling Volkswagen and GM.