To Break through Slump in China
Hyundai Motor is considering producing a new generation of the Avante compact at Beijing Plant 1, Hyunai’s first plant in China that was shut down due to a low utilization rate caused by sluggish sales. The Avante is Hyundai’s best-selling car in the world market as well as in China. It remains to be seen whether the planned new Avante will be able to prop up Hyundai's slumping sales in China.
Hyundai is considering producing a full-change model of the Avante at Beijing Plant 1 in the second half of next year, industry sources said on Aug. 29. The model is the 7th-generation Avante named “Project Name CN.” Its production will kick off in the first half of 2020 in Korea. As before, Hyundai is expected to introduce a model designed to appeal to Chinese consumers.
Beijing Plant 1, which is likely to produce the Avante, has ceased operations due to a production cut stemming from sluggish sales. Its annual production capacity is about 300,000 units, but its utilization rate plummeted below 50 percent.
The plant was established in 2002 by Beijing Hyundai Motor, a joint venture between Hyundai Motor and BAIC in China. Hyundai's sales in China surpassed one million units before the 2017 THAAD incident, but fell to 785,000 units in 2017 and 790,000 units in 2018.