South Korean automaker Hyundai Motor is set to establish its fourth plant in Chongqing, China, with an investment of $926.48m.
This move is aimed at increasing the company's global market share in the automotive industry. The company currently has three plants in Beijing in a joint venture with Beijing Automotive Industry Holding.
The carmaker was quoted by Reuters as saying that it is establishing the new plant in order to maintain its stable market share of 10%.
A preliminary deal will be signed by Hyundai Motor Group chairman Chung Mong-koo with the government of Chongqing city on 27 March 2014.
The investment will be funded by the joint venture. Construction of the new plant is expected to start in 2014, with production to commence in early 2016.
Hyundai expects that the plant will expand its production capacity to 2.3 million vehicles per year in China. The plan is currently subject to approval from China's central government.
Earlier this month, Hyundai also unveiled its all-new Sonata mid-size sedan in South Korea.
