Flags of South Korea and China are seen at a plant of Hyundai Motor Co on the outskirts of Beijing, China January 25, 2019. REUTERS/Jason Lee
SEOUL (Reuters) – Hyundai Motor is considering increasing its stake in its China joint venture, Sichuan Hyundai Motor, among various plans being weighed for the unit, the South Korean automaker said on Tuesday.
Hyundai’s move would follow a trend of foreign automakers boosting ownership in the world’s biggest car market since Beijing relaxed rules last year.
Volkswagen AG is exploring the prospects of buying a big stake in its Chinese electric vehicle joint venture partner, sources have told Reuters, while BMW has agreed to buy control of its main joint venture in China.
Hyundai is reviewing various plans to strengthen the joint venture’s competitiveness in changing market conditions in China, the firm said in an emailed statement, without elaborating.
Sichuan Hyundai Motor, which makes cargo trucks and buses, is jointly owned by Hyundai and China’s Sichuan Nanjun Automotive Group, with a stake of 50% each.
The commercial vehicle maker is struggling with poor sales, having sold only about 2,500 vehicles from January to September this year.
Reporting by Ju-min Park and Hyunjoo Jin; Editing by Clarence Fernandez