On January 17th, Hyundai announced that Beijing Hyundai had sold its Chongqing factory to Chongqing Liangjiang New Area Yufu Industrial Park Construction Investment, for CNY 1.62 billion (US$ 226 million) at the end of 2023, a figure less than half of its initial listing price in 2023, as reported by News Agency.

The Chongqing factory, the fifth complete car manufacturing plant established by Beijing Hyundai in China, covering an area of 1.87 million square meters, the factory had a total investment of CNY 7.7 billion. However, due to various reasons, it ceased operations in December 2021.

Initially, the Beijing Hyundai Chongqing factory was listed for sale on August 11, 2023, with a transfer base price of CNY 3.68 billion. However, the sale was not completed by the deadline.

After the unsuccessful auction, the factory was relisted on September 27 with a reduced base price of RMB 2.58 billion, a reduction of CNY 1.1 billion. Subsequently, it underwent a third listing with a base price of CNY 1.917 billion until it was finally sold for 1.62 billion.

Hyundai Motor stated that this sale is part of an effort to reasonably adjust the operational model of its factories in China to enhance efficiency. Industry insiders believe that the Chongqing municipal government primarily led the sales process. News Agency also mentioned that Hyundai Motor might consider selling its Changzhou factory.

According to public data, Hyundai Motor's sales in China were an all-time high in 2016. However, since facing marketing setbacks in China in 2017, the company sold its first factory in Beijing in 2021. This sale has reduced Hyundai's manufacturing presence in China from five to three factories, including the second and third Beijing factories and the Changzhou factory.

Beijing Hyundai's 2023 sales data showed a year-over-year increase. Furthermore, Beijing Hyundai announced the launch of the eleventh-generation Sonata and fifth-generation Shengda in 2024 and plans to develop over six pure electric and plug-in hybrid products within the next three years.

The current factory sales are mainly due to Beijing Hyundai's declining sales in the Chinese market, resulting in overcapacity and shrinking business.

Yueda Kia, another Sino-Korean joint venture, also has the same problem. To alleviate the problem of overcapacity, Yueda Kia exported half of the cars produced outside China in 2023 to cope with the decline in demand in the Chinese market.