Hyundai Motor Group is seeking to restore its relevance in China, but analysts say the odds of a meaningful turnaround are slim in the hypercompetitive auto market. Beijing Hyundai, the joint venture with BAIC Group, stated it will open core capabilities in electrification and intelligent technologies, dispatch senior experts, and introduce the premium brand.
Hyundai Motor Group is working through its joint venture Beijing Hyundai with BAIC Group to regain competitiveness in China's auto market. In mid-January, Hyundai CEO Jose Munoz met BAIC Chairman Zhang Jianyong for the second time in a year. BAIC has committed to resource sharing, a joint R&D platform, and support in talent deployment and marketing to advance premium positioning and localization.
The outlook, however, is less promising. Hyundai is still opening its electrification capabilities to the venture, even as new energy vehicles make up over half of China's auto sales. Rivals like Volkswagen and Toyota empowered their Chinese teams much earlier to tailor products locally.
"The focus of China's auto market has shifted to domestic brands," said Joel Ying, an analyst at Nomura's China Auto & Parts and Technology Research. Core technologies and development are now largely driven by Chinese automakers and supply chains.
An anonymous analyst questioned Hyundai's commitment: "Hyundai talks up the strategic importance of China, but its real focus has long been on western markets." This explains why a global top-four automaker has become marginal in the world's largest car market. For instance, it relocated China operations from Seoul to Beijing only in 2019. Around 2020, it recruited several senior Chinese executives for tasks like imports, but many left soon after due to insufficient authority.
The lag shows in products. Beijing Hyundai offers just one electric vehicle, the Elexio, launched in late October with a 722 km range and smart driving from Chinese firm Haomo, which is on the verge of bankruptcy. Sales were 221 units in November and 228 in December—negligible against 1.5 million monthly NEV sales.
The venture plans 20 models by 2030, including 14 NEVs, targeting 500,000 annual sales, more than double 2025's 210,000 units. This would mark the first yearly growth after eight years of decline, aided by 60,000 export units. Sales peaked at 1.14 million in 2016, falling to under 160,000 in 2024.
Hyundai's other venture, Jiangsu Yueda Kia, delivered 254,000 vehicles in 2025, up 2.3% year-on-year, also boosted by exports. Munoz mentioned introducing the premium brand, possibly selling Genesis through Beijing Hyundai dealers. The new CEO, Li Fenggang, is a former FAW Audi executive.
Genesis is present in China but underperforming. It appointed a new China chief in January—the fourth since re-entering in 2021—and sells only gasoline models through 15 dealerships, compared to FAW Audi's around 600. Former CEO Izzy Zhu, the only Chinese among them, said local production could start in three to five years before resigning in August.
"There is little chance, if not at all, for Genesis to make it in China," the anonymous analyst said. "Foreign brands no longer enjoy the magic aura they once did. Also, unlike European marques, Hyundai does not usually evoke an image of luxury in the minds of Chinese consumers."