After putting the plant up for sale in August, Beijing Hyundai Motor (OTC:HYMTF) has reduced the initial selling price of its automobile manufacturing facility located in the southwestern city of Chongqing, China, by nearly 30%, bringing it down to 2.58 billion yuan ($353.38 million).
The facility is part of a joint venture between Hyundai Motor and Beijing Automotive Group Co. The move to lower the asking price is in response to Hyundai's strategic adjustments in the Chinese market, where it faces intense price competition and a slowdown in demand. As of now, no specific buyer or timeline has been for disposal of the plan.
"We plan to strengthen efforts to improve profitability through rationalization of production," the firm said Monday.
Beijing Hyundai Motor is offering the land use rights, equipment, and associated facilities of the plant, which began production in 2017 with an annual capacity of 300,000 cars.
This decision to sell the plant aligns with Hyundai's commitment in June to undertake further restructuring of its China operations, prioritizing profitability.
At its peak, Hyundai had five plants in China, but in 2021, it divested one of them. The long-term plan is to operate only two plants, thereby optimizing production for exports to emerging markets.