Hyundai Motor's Chinese subsidiary, Beijing Hyundai, is expanding its exports while facing domestic sales challenges, emerging as a global production hub. Amid overall sluggish production and exports from overseas subsidiaries in Europe and Asia, the Chinese operation is increasing its exports, positioning itself as a new global export base for Hyundai.
According to Hyundai, Beijing Hyundai (BHMC) sold a total of 86,347 vehicles in the first half of this year, with 40,285 units, or 46.7%, designated for export. This means that one out of every two vehicles sold in the first half was headed for overseas markets.
While total sales decreased from 94,175 units last year, export volumes increased by 5,421 units compared to the same period last year (34,864 units). The export share rose significantly from 37% to 46.7%, an increase of 9.7 percentage points.
Notably, in the second quarter, exports surpassed domestic sales for the first time. The export volume for the second quarter reached 24,083 units, exceeding domestic sales of 19,062 units. Despite a decline in local sales due to intensified competition from domestic electric vehicle manufacturers, the company is transitioning to a structure that maintains production levels through increased exports.
By model, the Elantra was the most exported vehicle, with 14,803 units. It was followed by the Sonata (10,328 units), the Mufasa (6,051 units), and the Tucson (5,874 units).
This export expansion at Beijing Hyundai contrasts with trends at other overseas production facilities. Production and export volumes from Hyundai's overseas subsidiaries in Europe and Asia are declining.
Hyundai's Indian subsidiary (HMI) sold a total of 386,357 units in the first half of this year, an increase from 372,049 units in the same period last year. However, exports decreased from 86,240 units to 80,405 units, with the export share dropping from 23.2% to 20.8%.
Hyundai's Turkish subsidiary (HMTR), a European export base, exported 57,552 out of 77,758 total units in the first half, resulting in a 74.0% export share. This is a significant decline compared to last year's first half, when 100,176 out of 120,347 units were exported, yielding an export share of 82.4%.
Similarly, Hyundai's Indonesian subsidiary (HMMI), an ASEAN production base, exported 22,045 out of 29,945 total units in the first half, achieving a 73.6% export share. This is a slight decrease from last year's first half, when 25,973 out of 34,921 units were exported, resulting in a 74.3% export share.
Experts believe that Hyundai's strategy to use China as an export base is beginning to yield results. By compensating for domestic sluggishness with exports to third countries, the company is enhancing its factory utilization and production efficiency.
Kim Pil-soo, a professor at Daelim University specializing in future mobility, stated, "The vehicles produced by Hyundai in China primarily head to third countries such as the Middle East and Asia. To minimize market overlap with domestically produced models, a strategy that emphasizes brand competitiveness over production location, similar to Tesla, is necessary."
* This article has been translated by AI.
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