Due to a Drop in Vehicle Sales
Citing remarks made by an insider of Beijing Hyundai, China Business News reported on Feb. 21 that the Chongqing plant of Hyundai Motor’s Chinese joint venture Beijing Hyundai had been suspended since December 2021. It added that most of the production line workers are on vacation.
The Chongqing plant is one of the four factories operated by Beijing Hyundai. Of the three others, two are in Beijing and one is in Changzhou. Beijing Hyundai originally operated its first, second and third plants in Beijing, its business base, but sold the first one in 2021 as business difficulties continued.
Beijing Hyundai invested about 1.6 trillion won in 2017, the heyday of its Chinese business, to build a factory capable of producing 300,000 cars a year. The plant mainly produces vehicles targeting the Chinese market, such as the Verna, the Ansino, the Fiesta, and the ix25.
The Chinese news outlet reported that a sharp drop in sales of Hyundai Motor cars in China over the past few years contributed to the shutdown of the Chongqing plant.