|By PR Newswire||
|March 31, 2014 11:29 AM EDT||
CHONGQING, China, March 31, 2014 /PRNewswire/ -- Hyundai Motor Group (Hyundai), a South Korean auto manufacturer, signed a strategic cooperation agreement with the Chongqing municipal government on March 27 to accelerate its market development in Midwest China.
Midwest China's market has won the global auto giant's attention for its strategic location that connects the markets of China's coastal cities, Europe and Central Asia.
"As a nodal region of the Silk Road and the Yangtze River economic belt, and a central city in China's western movement, Chongqing is the best location for automobile manufacturing," said Chung Mong-koo, chairman of Hyundai Motor Group, during a meeting with Sun Zhengcai, secretary of the Standing Committee of the CPC Chongqing Municipal Committee. Chung hopes Chongqing can play an important role in increasing sales for Hyundai in inland China, and promote the automobile industry in Midwest China.
Huang Qifan, mayor of Chongqing, and Seol Yong-heung, vice-chairman of Hyundai Motor, signed the agreement on behalf of their respective sides.
The agreement stipulates that Chongqing will provide sound policies and service to enhance the cooperation in whole vehicle manufacturing and parts supply. Hyundai should speed up construction of its fourth auto plant in Chongqing.
Chung Mong-koo said Hyundai will spare no efforts in promoting the auto construction project in Chongqing, which will lay a solid foundation for bilateral in-depth cooperation. Chung hopes the strategic partnership between Hyundai and Chongqing can have profound influence on both sides. Hyundai is expected to reach its 2016 sales target of 1.82 million vehicles in China. The motor group plans to expand its footprint in Midwest China markets based in Chongqing.
According to the agreement, thanks to Hyundai's technological innovation and Chongqing's comprehensive advantages, both sides will work to develop a comprehensive strategic partnership in whole vehicle manufacturing, parts support, automotive aftermarket exploration, brand promotion, steel development, construction and machinery industries.
Huang Qifan listed five advantages of Chongqing in regards to market, auto industrial cluster, policy, talent, and production factors and cost, all of which contribute to its rising status in the national and global auto manufacturing industry.
First, Chongqing has the largest growth potential for auto consumption in China, with its population reaching over 200 million. Second, Chongqing currently has an annual production capacity of 2 million vehicles, with five domestic and five foreign auto manufacturers. It also is home to more than 1,000 manufacturers of auto parts and components, which are able to supply over 80 percent of auto manufacturers. Third, as an important city in West China, Chongqing boasts various national development areas, including Liangjiang New Area and various bonded zones with preferential industrial policies. Fourth, Chongqing has 78 colleges and universities with over 1 million students and 200,000 - 300,000 graduates every year. Fifth, Chongqing enjoys preferential conditions for industrial development with sufficient production factors and lower cost.
"Chongqing has become an important strategic base for domestic and foreign auto manufacturers with its sound economic growth and local strength," Huang concluded.
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