Hyundai's new compact car to bask in China's subsidy program
HONG KONG (Yonhap) -- Hyundai Motor Co.'s new compact car to be manufactured in China will benefit from Beijing's subsidy program, a move likely to boost sales for the South Korean automaker, company sources said Wednesday.
The new Elantra, known as the Langdong in China and Avante MD in South Korea, has been included in the Chinese government's latest subsidy program designed for supporting sales of fuel-efficient passenger cars with engines up to 1.6 liters, sources at Hyundai said.
The car is among 149 models made by 27 automotive brands that the Chinese government has picked for the latest round of its subsidy program.
The chosen cars will receive subsidies of 3,000 yuan ($470) per vehicle.
The latest version of the Elantra series will be manufactured from the third quarter at Hyundai Motor's third Chinese factory, the carmaker said.
Hyundai Motor is set to complete construction of its third Chinese plant later this month in Beijing.
The third Chinese factory will have an annual capacity of 300,000 vehicles, boosting Hyundai Motor's overall annual capacity in China to 1 million vehicles.
The Korean automaker said earlier, it plans to produce revamped models of the Yuedong, the Chinese version of the steady-seller Elantra, and of the sports utility vehicle Santa Fe as well as high-end models.
Hyundai Motor sold 372,801 vehicles in China in the first six months of this year, showing a steady performance in the world's largest auto market.
The figure was up 2.6 percent from the same period a year earlier.
The growth during the six-month period was largely attributed to stronger sales of the automaker's compact cars such as the Elantra. (Yonhap)