Hyundai seeks to restore its market share in China with a new electric vehicle (EV) brand. The South Korean automaker is working with BAIC on its goal.
This week, Beijing Hyundai Co.—a 50-50 joint venture between Hyundai Motor and BAIC—announced a new project to develop an electric vehicle brand exclusive to the Chinese market. The company’s latest plans seem to be part of its plan to launch five new EV models in China over the next three years.
The Chinese auto industry will closely watch Hyundai’s project with BAIC. Hyundai and BAIC have already tried to penetrate China’s robust EV market with the Arcfox EV lineup at their factory in Beijing. Unfortunately, Hyundai and BAIC’s Arcfox project failed due to disparities in their financial terms.
If the South Korean automaker is successful with its latest BAIC joint venture, it may regain some of its market share in China. Hyundai’s annual output in China peaked in 2017 at 1.6 million units. The car maker’s output has dropped to 250,000 units after Beijing retaliated against Korean brands due to Seoul’s deployment of the United States’ antimissile system, THAAD (Terminal High Altitude Area Defense).
According to KED Global, Hyundai missed its chance to ride China’s EV wave during Beijing’s retaliation against Korean brands. Hyundai isn’t the only foreign car company strengthening its presence in China, either. Volkswagen recently implemented some changes to its Board of Management to focus on growing its market share in China.