(Yicai) Dec. 13 -- BAIC Group and South Korea’s Hyundai Motor have agreed to increase the registered capital of their carmaking joint venture in China by USD1.1 billion to bolster its competitiveness, fund its shift to electric vehicles, and support its business transformation.

Beijing Hyundai’s registered capital will jump to nearly USD4.1 billion as a result, Beijing-based BAIC announced yesterday. The shareholders will retain 50 percent of the JV each.

Founded in 2002 with a registered capital of USD2 billion, Beijing Hyundai was once one of China’s most successful auto ventures, with sales peaking at 1.14 million cars in 2016. It sold just 257,000 last year and 134,000 in the first 10 months of this year.

In March 2022, BAIC and Hyundai poured USD942 million into the JV to shore up its financial  position, fund new product development, expand its presence in the new energy vehicle sector, and support export growth.

Beijing Hyundai is expected to launch its first pure electric vehicle based on a platform co-developed with BAIC next year. From 2026, it will develop five new models, including pure electric cars and range-extended EVs.

Editor: Futura Costaglione