The China joint venture of Hyundai Motor is dealing with extreme difficulties due to a complex political, financial and competitive environment, its chairman stated on Wednesday, admidst of a political stand-off in between China and South Korea.
The automaker has seen its sales struck in the nation and has dramatically cut production amid anti-Korean sentiment concerning the prepared deployment of a U.S. missile defense system outdoors Seoul and increasing competition from Chinese brands.
“At the moment given the complex political, financial and competitive market environment, Beijing Hyundai faces what we can describe as severe market challenges,” Xu Heyi, chairman of Beijing Hyundai Motor, stated at Shanghai Motor Show.
Beijing Hyundai is a joint venture between Hyundai and BAIC Motor.
Hyundai and affiliate Kia Motors saw combined China sales downturn 52 percent in March from the exact same month a year ago. China, the world’s most significant car market, represented over a quarter of the pair’s last year overseas sales.
On the other hand, rivals Toyota Motor, Honda Motor and General Motors reported increases in China sales previous month.
