Beijing Hyundai starts trial production of new Elantra.
source: Gasgoo.comDecember 11, 2007 - Beijing Hyundai started trial production of new Elantra at its second plant yesterday, Xinhua News Agency reported.
Elantra is Beijing Hyundai’s best-selling car model. But in the first ten months this year, the sales of Elantra declined to 94,410 units from 139,790 units in 2006, a decrease of 32.5 percent.
Troubled by the lack of new model this year, the company has suffered sluggish sales since the beginning of this year. The company hopes to achieve a turnaround next year by introducing new Elantra next year. The volume productions of new Elantra next year will double Beijng Hyundai’s capacity to 600,000 units.
At the beginning of this year, the company set up a half a million sales target for 2007, but sluggish sales in the first half year forced the company cut its sales target to 260,000.
Beijing Hyundai is a 50:50 joint venture founded in 2002 by Hyundai Motor Co and Beijing Automotive Holdings.
The company is currently facing the biggest challenge it has ever encountered since it entered into Chinese market 10 years ago. The company's sales, which had been soaring until 2006, have taken a sharp dive thereafter and market share has shrunk to 6.3 percent from 9.5 percent last year.