Hyundai exploring the possibility of supplying more cars from China to Australia
Hyundai is reportedly exploring the possibility of supplying more cars made in China for sale on the Australian market. This indicates dynamic changes in the global automotive business. Rising production costs and shifting priorities are forcing manufacturers to reconsider their choices of locations for car production and the speed of their release.
Company executives state that Chinese plants could play a larger role. Hyundai Australia already imports several models from overseas plants. These include the i30 and Tucson, which for the local market are produced in the Czech Republic, while the high-performance i20 N is supplied from Turkey.
Could China make a greater contribution?
Hyundai already has large plants in China capable of producing large volumes of hybrid and electric vehicles. Globally, the company has three plants in South Korea and eight additional production facilities worldwide, providing it with a broad supply network.
We already receive cars from Turkey and the Czech Republic, and we have plants all over the world that we are constantly studying and evaluating for viability. There are likely several products that could come from other plants. It may not be just China.
However, China could be an attractive option, as Hyundai has a research and development center in Shanghai. This would be a continuation of the Hyundai Elexio story, which became the first Hyundai from China to be sold in Australia.
Global supply and future prospects
While most Hyundai models for the Australian market are supplied from South Korea, the company has strengthened its position in the local market with a growing range of SUVs and electric vehicles. Future products are likely to continue this trend. Exports to Australia could include more such vehicles produced in China and other regions, allowing the brand to meet demand more quickly.
Hyundai Australia’s approach will involve analyzing all markets and selecting models that will be effective at the local level. When asked whether cost plays a decisive role, company representatives deny this. Looking ahead, the company has also suggested that its future pickup truck could in time be produced in several regions, including Southeast Asia, rather than exclusively in the US, if demand justifies it.
Expanding the supply geography is a logical step for global automakers in modern conditions. Competition, especially in the electric and hybrid vehicle segments, requires flexibility and optimization of logistics chains. Utilizing capacity in China, which concentrates a significant portion of the world’s electric vehicle and battery production, could give Hyundai additional advantages in time-to-market and, potentially, in cost. The success of the Elexio model was likely an important test for the company, showing the readiness of Australian consumers to accept cars made in China, provided the brand’s high quality standards are maintained.