Hyundai Motor Plans To Cut China's JV Plant Selling Cost By 30%: Report

Hyundai Motor Co HYMTF cut the minimum asking price for its to-be-divested auto plant in China.  

The South Korean automaker has curtailed the price of the plant, located in the southwestern city of Chongqing, by around 30% to 2.58 billion yuan ($353.38 million), as per Reuters. 

Hyundai has not given any timeline or buyer details related to the divestiture of the asset, which is a part of a joint venture of Hyundai Motor and Beijing Automotive Group Co.

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The asset sale is part of its plan to revise China's business strategy amid strong price competition and weak demand scenarios.

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The company has reportedly put the facility for sale in August at a starting price of 3.68 billion yuan ($505 million). 

Notably, the company is selling the plant's land use rights and equipment, which has an annual capacity of 300,000 cars.

"We plan to strengthen efforts to improve profitability through rationalization of production," the firm said in response to queries from Reuters, without commenting on the cut.

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Price Action: HYMTF shares closed higher by 2.42% at $39.00 on Friday.