Beijing Hyundai Increases Capital by 1.2 Trillion KRW for "Electric Vehicle Investment"

Beijing Hyundai Changzhou Plant Overview

[Asia Economy Reporter Yoo Hyun-seok] Beijing Hyundai (BHMC), Hyundai Motor's joint venture in China, will increase its capital by $942 million (approximately 1.145 trillion KRW). The investment will be used to respond to electrification in China.

According to local Chinese media on the 20th, Hyundai Motor and Beijing Automotive agreed to invest $471 million each in the capital increase of their joint venture, Beijing Hyundai. Half of the amount will be paid by June, and the remaining half by December.

Beijing Automotive stated in a disclosure, "This capital increase aims to ensure financial stability while responding to electrification in the automotive industry," indicating that the newly injected funds will mainly be used for the increasingly important electric vehicle business in the Chinese market.

Hyundai Motor has recently experienced poor performance in the Chinese market. Beijing Hyundai's sales last year were 360,565 units, down by half compared to 791,177 units in 2018. The downward trend continued with 662,590 units in 2019 and 440,177 units in 2020.

This capital increase is expected to support additional investments needed for electrification in China and strengthen Beijing Hyundai's financial stability.

This content was produced with the assistance of AI translation services.