Hyundai Motor is considering building an auto plant in Southeast Asia, possibly Indonesia and Vietnam, as the South Korea automobile giant seeks to counter a sales slump in China caused by geopolitical tensions, according to Reuters.
Although the automaker has some pure assembly operations in Indonesia and Vietnam where cars are made from “knock-down” kits, it is yet to have a car manufacturing factory in Southeast Asia.
Diplomatic tensions between Beijing and Seoul last year over the South Korea’s planned deployment of U.S. anti-missile defense system THAAD have caused sales of Korean firms including Hyundai in China to plummet.
Meanwhile, despite its small size, the Vietnamese market is one of the fastest-growing ones as more affluent people move from motorcycles to cars as a mode of transport.
However, after a surprise rise to a 20-year high in 2016, car sales in the Southeast Asian country dropped 10% year-on-year to 272,750 in 2017, according to the latest statistics by the Vietnam Automobile Manufacturers" Association (VAMA).
The Investor reported in November 2016 that Hyundai Motor had signed a memorandum of understanding with Hyundai Thanh Cong Auto Co., a joint venture between Hyundai and Vietnam’s Thanh Cong Auto Company, for the construction of a new complete knockdown plant that assembles auto components shipped from South Korea.
The new facility would be built in Ninh Binh province, northern Vietnam, with plans to be completed by 2018. The plant will mainly focus on assembling compact hatchback Grand i10. The automaker hopes to roll out 120,000 units initially and boost the annual capacity to 240,000 units.
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Cùng dòng sự kiện
Từ khóa: Vietnam, VAMA