by Sam D. Smith
- Hyundai recently launched the China-built Elexio in Australia.
- Chinese plants already build hybrid and electric vehicles.
- Most local models still arrive from South Korean factories.
Hyundai is reportedly considering whether to source more vehicles from China to sell in the Australian market, something indicative of how dynamic the global auto business is. The increasing costs of production and changing priorities are forcing manufacturers to reconsider their choice of location in which to manufacture cars and the speed at which they can complete them.
Senior executives say Chinese plants could play a larger role, with Hyundai Australia already importing several models from overseas factories. These include the i30 and Tucson built in the Czech Republic for the local market, while the high-performance i20 N comes from Turkey .
Could China Contribute More
Hyundai already has large plants in China where they can produce large volumes of hybrid and electric vehicles. Globally, the company operates three factories in South Korea and eight additional production facilities around the world, giving it a wide network to draw from.
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“We’re currently sourcing from Turkey and the Czech Republic already, and we’ve got factories globally everywhere that we’re constantly studying and assessing the viability,” said Hyundai Australia’s Product Development Manager, Tim Rodgers, reports The Drive. “There are probably multiple products that may come from other factories. It may not just be China.”
But China could be an attractive option, with Hyundai having an R&D center in Shanghai. It would follow on from the Hyundai Elexio, which was the first Hyundai from China to be sold in Australia.
While most of Hyundai’s Australian lineup comes from South Korea, the company has gained a strong local presence through its growing lineup of SUVs and EVs, and its future products will probably continue this trend. Exports to Australia could be more of such vehicles being built in China and elsewhere, so that the brand does not have to wait long to meet demand.
Worldwide Sourcing
Hyundai Australia’s approach will be to scan all markets, picking and choosing models that will work locally. When asked if costs played a factor, Rodgers claimed it wasn’t. “I don’t think doing these cross-country price comparisons applies to any manufacturer in the market right now,” he said.
Looking ahead, the company has also suggested that its upcoming pickup could eventually be produced in multiple regions, including Southeast Asia, rather than solely in the United States if demand warrants it.