Hyundai-Kia Motors will have a combined global production capacity of 8.41 million units a year by operating new plants in overseas markets, which show growth this year. The figure is an increase of 500,000 units from last year.
Hyundai Motor Group announced on Jan. 10 that it will have a global production capacity of 8.41 million units, up 500,000 units when its fourth Hyundai Motor plant in China, currently under construction, and Kia Motor plant in Mexico begin operation this year.
Kia Motors’ Nuevo Leon plant in Mexico with an annual production capacity of 300,000 units will start operations in May this year, mass producing the K3 compact sedan. Around 60 percent of the annual output from the plant will be exported to North America, while 20 percent will cover the Mexican market. The remaining 20 percent will also be exported to other Latin American countries.
Hyundai Motor’s fourth plant in Changzhou, China, is expected to be completed in the second half of this year with a production capacity of 200,000 units. From the second half of the year, the plant will begin operation with an annual production capacity of 200,000 units, including its strategic compact car models in China, and expand the production capacity to 300,000 units by 2018.
The operation of its fourth plant in China will propel its local sales, which have been bouncing back from the second half of last year. This is largely due to the fact that the Chinese government slashed taxes in half for cars with 1.6 liter or smaller engines in order to stimulate the economy. Since the Chinese government is planning to continuously give tax benefits this year, Hyundai and Kia Motors are expected to stand to benefit from this policy.