Beijing Hyundai, a joint venture between Hyundai Motor Company and its Chinese partner, has lowered its asking price for the Chongqing factory by 30%.
According to reports by Reuters and local Chinese auto media outlets on Oct. 9 (local time), Beijing Hyundai specified in the documents submitted to the Beijing Assets and Equity Exchange (CBEX) at the end of last month that the minimum bid for the land-use rights, equipment, and other facilities of the Chongqing factory is set at 2.58 billion yuan (4,762 billion won). This is a nearly 30% downward adjustment from the 3.68 billion yuan in August.
Beijing Hyundai has been readjusting its sales strategy amid fierce price competition and a slowdown in demand in China. In China, Beijing Hyundai had operated five plants: three in Beijing, one in Changzhou, and one in Chongqing. However, the first Beijing plant was sold in 2021, and there are plans to sell the Changzhou plant.
If the sale of the Chongqing factory, which was listed last June, goes through, the number of production plants in China will be reduced to two.
The Chongqing factory, with an annual capacity of 300,000 units, commenced operations in 2017.