According to The Korea Economic Daily Global, Hyundai Motor Co. will produce electric vehicles under BAIC Motor Corp.'s electric vehicle brand, Jihu, in China in an effort to revive its struggling business in the Chinese market.

　　On October 11th, according to insiders from Seoul and Beijing, Hyundai and BAIC have agreed to produce the Jihu electric vehicle at a factory in Beijing Hyundai Motor Co., and are currently discussing relevant details. Jihu will become the first foreign brand in modern automobile production.

　　A person familiar with the situation said, "This cooperation indicates that Hyundai has not yet given up on the Chinese market." Hyundai is attempting to rebuild its bridgehead for expansion in the Chinese market by building an electric vehicle production line

　　Since 2017, Hyundai has been struggling in the Chinese market. Last year, Hyundai's market share in China dropped from a peak of about 7% at its peak to less than 1%, with sales of only 254000 units, compared to a total of 26.9 million units sold in China during the same period.

　　In addition, Hyundai only sells electric versions of existing internal combustion engine vehicles in the Chinese market, rather than electric vehicles based on dedicated electric vehicle platforms, which has affected its development in the Chinese market.

　　Hyundai Motor had planned to launch a dedicated electric vehicle "IONIQ" based on the Hyundai Group's clean energy vehicle platform in the Chinese market, in order to regain momentum in the Chinese market. However, it is reported that Hyundai believes that it would be reckless to compete with Chinese electric vehicle manufacturers such as BYD with its own brand, so it abandoned this plan.

　　So, Hyundai Motor turned to discussing the production of the Jihu electric vehicle with its joint venture partner BAIC.

　　Image source: Jihu

　　According to another insider from Beijing, "This production is a step towards alleviating financial difficulties." He added that the company plans to establish its first electric vehicle production line there.

　　Hyundai once had five factories in Chinese Mainland, producing 1.6 million cars every year. In 2021, the company sold one of its Beijing factories to Ideal Automobile. Recently, the company has also listed and sold its Chongqing factory.

　　Hyundai may be responsible for the design, production, and quality control of the Jihu electric vehicle model at the No. 3 plant in Beijing. This production is expected to help the company improve the operating rate of its factories in China, which is currently less than 50%.

　　In June of this year, Hyundai CEO Chang Jae-hoon also stated at the "2023 CEO Investor Day" forum, "We will improve the production efficiency of other factories by producing global models and increase exports to emerging markets

　　At present, Hyundai has begun to show signs of recovery in the Chinese market. In the first eight months of this year, the company produced and sold 157000 cars in China, an increase of 9% compared to the same period last year, mainly due to its focus on selling more profitable SUVs.

　　This article is reprinted from Gaishi Automotive Information Network