Chongqing plant to boost Hyundai's development in Southwest China

South Korean carmaker better explore China's vast southwestern market.

Already producing the Verna and Encino models, the plant in the Liangjiang New Area is planning to add performance car Lafesta in the second half of the year.

Lafesta features a trendsetting design, with a focus on both style and sportiness, according to Hyundai. It is equipped with a 1.6-liter turbocharged engine and a seven-speed dual clutch.

The model also boasts advanced driver assist systems and in-car connectivity, which will offer customers more safety and a better interactive experience.

Production of Lafesta at Chongqing confirms that the plant, with an annual capacity of 300,000 units, is fast rising as an important engine of Hyundai's development in China, especially in the potentially huge southwestern market.

Covering 1.87 million square meters and finished in late 2017, the manufacturing facility cost 8.39 billion yuan.

"In terms of investment, we are probably No 1 among car manufacturers in the city," said Li Qihe, vice-president of the Chongqing plant.

The sizeable investment has made it Hyundai's best plant in China. Among other things, it has a fully automatic press workshop, and a welding workshop boasting up to 326 robots. In addition, the assembly workshop has flexible lines, each of which is capable of processing different models.

The plant has attracted a large number of suppliers to Liangjiang New Area, including Mobis and Hainachuan.

"Our Chongqing plant is integrating into the city's automotive landscape, which will boost the sector's development and also help in local industrial restructuring," said Li in an interview with the Chongqing Times newspaper.

He added that Chongqing, with a sound industrial chain ranging from research and development to manufacturing and logistics, has been an important pillar in China's automotive sector.

In Liangjiang New Area alone, 2.28 million cars were made in 2017, accounting for 67 percent of the total in the city and generating an industrial output of 270 billion yuan.

The output is expected to total 350 billion yuan by 2020, of which 100 billion yuan will be from new energy cars and smart vehicles, according to the new area’s website.

The website says that the new area, as an important car manufacturing base, is accelerating development of a digital economy to increase sales and improve efficiency in the industrial chain.