Posted on 13 Dec 2024
Chinese automaker BAIC and South Korean peer Hyundai Motor have jointly invested another approximately $1.1 billion in their Chinese joint venture automaker Beijing Hyundai, Kallanish reports.
According to a BAIC announcement on the Hong Kong Stock Exchange, the deal was done through its investment arm BAIC Capital. Each company injected $547 million, increasing Beijing Hyundai’s registered capital to approximately $4.07 billion.
Through the capital increase, BAIC Investment and Hyundai Motor will increase their investment in Beijing Hyundai’s brand, technology, products, talents, and funds. The move paves the way for the JV to change its current model of “simply introducing mature products from the international market,” BAIC says. The aim is to bring new car technology and better quality products and services to Chinese users.
The JV continues to be 50-50 owned.
“This capital increase is not only a positive response to China’s policy of expanding opening up and attracting foreign investment, but will also bring new momentum to Beijing’s economic development,” comments Zhang Xiang, researcher at the Automotive Industry Innovation Research Centre, at North China University of Technology. He adds the investment shows the JV’s determination to improve its electric vehicle business, despite its bad performance in this sector.
Source:Kallanish
