Hyundai Motors mulls building plant in Southeast Asia

SEOUL: South Korea’s Hyundai Motor said it is considering building a car plant in Southeast Asia with Indonesia and Vietnam as possible locations — part of efforts to diversify after a sales slump in China.

The firm does not have a car manufacturing factory in Southeast Asia, although it has some pure assembly operations in Indonesia and

Vietnam where cars are made from “knock-down” kits comprised of major component groups.

A diplomatic row between Beijing and Seoul last year over South Korea’s planned deployment of the United States anti-missile defence system THAAD has hurt Hyundai and other South Korean firms that are highly reliant on the Chinese market.

Hyundai expects its China sales to reach 900,000 vehicles this year, a recovery from levels last year, vice-chairman and heir apparent Chung Eui-sun also said on the sidelines of the consumer electronics show in Las Vegas, according to a spokeswoman.

Hyundai has not disclosed estimates for China sales last year but sales of 900,000 would still be far below its production capacity of 1.65 million vehicles in its biggest market.

Chung added that Hyundai is planning to enter China’s fuel cell electric car market, after it unveiled its new fuel cell electric vehicle, NEXO, with an estimated driving range of 370 miles, at the show. Reuters

Hyundai’s total vehicles sales expected in

China this year.