SEOUL, December 19 (AJP) - Hyundai Motor’s operations in China are showing signs of recovery, supported by rebounding domestic sales and a strategy to turn its Chinese plants into export hubs.
The pickup in vehicle production is also lifting parts maker Hyundai Mobis, which is on track to surpass 4 trillion won in China revenue for the first time in five years.
Beijing Hyundai Motor, Hyundai’s China joint venture, sold 12,016 vehicles in November, up 71.7 percent from about 7,000 units a year earlier, according to industry officials, Friday. Monthly sales have increased steadily in the second half of the year, exceeding 10,000 units for four consecutive months since August.
The Elantra, marketed in South Korea as the Avante, led sales with cumulative deliveries of 55,094 units through November. The Tucson sport utility vehicle also rebounded, recording monthly sales of more than 2,000 units since the start of the second half. A Hyundai Motor official said the company is focusing on models that can improve profitability, including a refreshed Tucson and an updated model-year Custo.
Exports have emerged as another key growth driver. Cumulative exports through November totaled 60,573 units, up 55.4 percent from a year earlier, supporting higher plant utilization. Beijing Hyundai's total sales this year have climbed 13.8 percent to 176,130 units, already surpassing its full-year total for last year.
Kia’s China operations have also improved. Cumulative sales through October rose 5.2 percent from a year earlier to 210,175 units, with the automaker posting steady growth since 2023.
The recovery at Hyundai and Kia has translated into stronger results for Hyundai Mobis. The auto parts supplier posted cumulative China revenue of 2.8 trillion won through the third quarter, up 16.7 percent from a year earlier.
That marked its highest third-quarter cumulative figure since 2020, when it reached 2.81 trillion won, putting an annual return to the 4 trillion won level within reach. In 2020, Hyundai Mobis recorded annual China revenue of 4.11 trillion won.
Beyond affiliate-related demand, Hyundai Mobis is seeking to expand orders from Chinese automakers. To strengthen its China business, the company has selected eight strategic products for eight key customers and aims to quadruple local original equipment parts orders by 2028.
Hyundai Mobis CEO Lee Gyu-seok said at the company’s CEO Investor Day in August that he would intensify efforts in emerging markets, including China and India, by developing locally tailored specifications and reinforcing its parts supply chain.
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