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South Korea’s global leading carmaker Hyundai Motor Group is seeking the ways of penetrating Europe’s hybrid car market by doubling the production capacity of the Uiwang plant owned by its affiliate Hyundai Mobis.
The group’s Uiwang plant currently produces 200,000 units of battery packs used in eco-friendly cars. The nation’s largest automaker is planning to expand production of Hyundai and Kia hybrid models targeting the European market, and raising battery production to 400,000 units is just the first step to this end.
Currently, Hyundai and Kia are selling hybrid models of the Sonata and K5 in both the domestic and US markets.
According to industry sources, HL Green Power, a supplier of environment-friendly battery packs used in hybrid cars to the Hyundai Motor Group, decided to invest 50 billion won until 2014 to expand its total battery pack output up to 400,000 units. HL Green Power also plans to build a secondary battery cell plant in Chungju for electric and hybrid cars, and will inject roughly 200 billion won in facilities upgrades until 2015.
The company is a joint venture set up by Hyundai Mobis and LG Chemicals with an equity ratio of 51:49. This joint venture was officially launched in February of 2010.
Hyundai Motor official commented “We have decided to make preemptive investments in order to dominate the hybrid market ahead of our rivals.”
“Depending on the sales trend of hybrid cars, we may supplement the improvements to the Uiwang plant by building a econd production plant in Chungju.” The Uiwang plant produces battery packs by using battery cells supplied by LG Chemicals.
This production site is considered a core unit of the group’s eco-friendly auto business, and upgrades to the plant are ssential if the Hyundai Motor Group decides to expand its eco-friendly auto business.
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