Chinese state-owned automaker BAIC Motor and South Korean Hyundai Motor have agreed to invest around $1.1 billion into their joint venture (JV), which is seeking to roll out more products targeting Chinese consumers and expand its export scale in international markets.
BAIC Investment, a non-wholly owned subsidiary of BAIC Motor, and Hyundai Motor will each inject around $547.7 million into Beijing Hyundai Motor, according to an exchange filing dated December 11. Upon completion of the transaction, the registered capital of Beijing Hyundai will be increased to around $4.1 billion.
“The capital injection by both parties will support Beijing Hyundai in maintaining capital stability in the short term and achieving transformation and development strategies through investment in new technologies and products in the long run,” the release added. Beijing Hyundai will remain as a joint venture of the two firms post-transaction.
The investment came over two years after BAIC Investment and Hyundai Motor jointly invested around $942.2 million into Beijing Hyundai to strengthen the JV’s capital stability as well as to further its investment amid the rising electrification of China’s automotive industry, according to an exchange filing in March 2022.
Beijing Hyundai has launched 42 models and hit cumulative sales of over 12 million units since its inception in 2002, per the filing.
Currently, eight models of Beijing Hyundai are available for sale including three sedans, four sport utility vehicle models, and one multi-purpose vehicle model. However, all of them are internal combustion engine vehicles.
New energy vehicle (NEV) sales contributed to 52.5% of the total vehicle sales in China in October 2024. That was the fourth consecutive month that saw NEVs crossing the 50% market, Reuters report citing data from the China Passenger Car Association (CPCA).
