Beijing Hyundai Company, the South Korean automaker’s main vehicle assembly joint venture in China, plans to reduce its workforce as it faces significant overcapacity in the country, according to local reports.
At its peak in 2016, before the political fallout between China and South Korea over the latter’s deployment of the US THAAD missile defense system, Hyundai sold more than 1.6 million vehicles annually in China. Sales dropped dramatically after the subsequent government-orchestrated consumer boycott.
Recent restructurings have reduced Hyundai’s production capacity in China to just over 1 million vehicles across three major factories, with two plants in Beijing and Chongqing sold to local carmakers. The Changzhou plant is expected to be sold next year, leaving Hyundai with just two factories in China.
Beijing Hyundai sold 257,000 units last year, equivalent to just a quarter of its installed capacity, while volumes fell another 26% to 112,000 units in the first eight months of 2024.
Recent unsubstantiated reports have suggested that Beijing Hyundai is preparing to cut 30% of its workforce as part of a six-month restructuring exercise expected to be completed by February 2025.
The company has dismissed these reports, stating that “the layoff of 30% of the workforce is not true,” while pointing to current efforts to ramp up exports of new energy vehicles (NEVs), including electric and plug-in hybrid vehicles.
“Hyundai Reportedly Planning Mass Layoffs in China” was originally created and published by Just Auto, a brand owned by GlobalData.
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