BAIC Group and Hyundai Motor to Invest $1.095 Billion in Beijing Hyundai
Beijing (Gasgoo)- On December 11, BAIC Capital, the investment arm of Chinese automaker BAIC Group, and Hyundai Motor announced a significant investment of $1.095 billion into their joint venture, Beijing Hyundai. The purpose of this additional investment is to boost competitiveness in the Chinese market and drive strategic transformation for the company.
Photo credit: Beijing Hyundai
The agreement stipulates that BAIC Capital and Hyundai Motor will each contribute $548 million, in proportion to their ownership stakes in Beijing Hyundai. This capital injection will be done in phases, ultimately raising Beijing Hyundai’s registered capital to $4.074 billion. Both BAIC Capital and Hyundai Motor will maintain a 50% ownership stake, and Beijing Hyundai will continue to operate as a joint venture.
With the automotive industry rapidly moving towards electrification and intelligent mobility, Beijing Hyundai is shifting away from traditional internal combustion engine vehicles. The company has unveiled its “In China for the World” strategy for 2024, focusing on forward-thinking initiatives.
Beijing Hyundai is set to introduce products tailored to the Chinese market, with a strong emphasis on electrification, smart technologies, and autonomous driving. The company will enhance its local R&D capabilities through technology centers in Yantai and Shanghai, driving innovation in intelligent and electric vehicles. By 2025, Beijing Hyundai plans to launch a new range of fully electric vehicles and establish a comprehensive new energy vehicle portfolio for Chinese consumers.
Additionally, Beijing Hyundai aims to become Hyundai Motor’s global export hub, with an annual production capacity of 500,000 units, including 100,000 units designated for export.
