By Kim Tae-gyu
This year for the first time Hyundai Motor Group is expected to manufacture over 3 million vehicles in plants located overseas since the Seoul-based conglomerate launched a global manufacturing system in 1997.
The Korea Automobile Manufacturers Association (KAMA) said Sunday that the country’s largest automaker produced 2.88 million vehicles abroad over the first 11 months of this year, up 21.8 percent from 2010.
Accordingly, the chaebol comprising two flagships of Hyundai Motor and Kia Motors is likely to reach 3.05 million for all of 2011.
“Hyundai Motor Group first surpassed the 2 million mark in 2010 in terms of offshore production and the group is poised to extend the feat to beyond the 3 million plateau in just a year,” a KAMA official said.
“In particular, the group established China as its major platform because the nation accounted for the majority of its overall global production at 56.8 percent.”
As for next year, KAMA expects Hyundai Motor Group to achieve almost double-digit growth in foreign production, totaling around 3.35 million cars.
Hyundai Motor alone has six international production lines in India, China, the Czech Republic, Turkey, Russia and the United States, which combined to roll out a record-high 1.99 million cars during the January-November period.
Kia Motors has factories in China, Slovakia and the United States on top of Korea.
“New facilities in Russia contributed to the increased capacity of Hyundai Motor this year and the focus on international investment will further gain weight in the future to maintain a lead in the competition with global giants,” a company official said.
“In order to grapple with high tariffs and meet the tastes specific for each locality, this is our best option.”
Hyundai Motor plans to add around half a million to its capacity next year by opening new factories in Brazil and China.
Kia Motors is striving to start building its third plant in China next year.
Both Hyundai and Kia first produced models outside of Korea in 1997. Hyundai started in Turkey as its first target while Kia began in China.