Hyundai Sells Its Factory for a Quarter of Its Original Valuation

Changan, through its subsidiary Deepal Automobile Technology, has confirmed the purchase of Beijing Hyundai’s plant in Chongqing. The asset changed hands for 1.62 billion yuan — roughly $228 million, far below its initial asking price. The company has not yet disclosed which models will roll off the line there or when production will restart.

The Chongqing factory was Hyundai’s fifth major production site in China. Construction began in 2015, and operations launched in 2017. The facility covers about 20.1 million square feet and was designed to build up to 300,000 vehicles a year. Production was halted in December 2021 after demand slumped. Hyundai tried multiple times to sell the plant, gradually dropping the price from 3.68 billion yuan to 1.917 billion, but a buyer surfaced only after the latest markdown.

Changan completed the site’s rebranding at the end of October, though the assembly line has yet to be restarted. For Deepal, the acquisition is a strategic milestone: the brand already operates large plants in Nanjing and Beijing, and bringing the Chongqing facility online will further boost capacity. With sales surging — 36,792 vehicles in October 2024, and up 57.1% year-to-date — the new plant should help the company strengthen its position in the EV and hybrid market.