South Korea's biggest auto maker, Hyundai Motor Co, aims to sell 200,000 vehicles in China next year, up a third from this year's sales target, a company spokesman said on Monday. Hyundai, which hopes to become a top three player in the world's fourth-largest vehicle market next year, set up a 50-50 joint venture with Beijing Automotive in October, 2002.
Beijing Hyundai Automotive Corp sold 110,862 vehicles in the first 10 months of 2004, the company said.
"Hyundai's hefty sales in China can be attributed to a localisation strategy, improving quality and brand image," said a Hyundai spokesman.
Beijing Hyundai, which currently ranks fourth in the Chinese market, has targeted sales of 150,000 vehicles this year, including 60,000 units of its mid-sized Sonata sedan and 90,000 Avantes.
The venture also planned to raise the number of dealerships to 200 from the current 170, Hyundai said in a statement.
Hyundai has said it would pump an additional $740 million into its China venture by 2007 to build a second plant.
Hyundai's investment plan, part of its goal of producing 600,000 units per year in China, comes as bigger global rivals have also ramped up spending to capitalise on Chinese growth.
But expansion in China's car market, which saw the auto world's fastest growth in 2003, began slowing from the second quarter as Beijing applied the brakes to overheating sectors of its economy.
The measures have squeezed carmakers' margins as they have cut prices to sell cars.