Hyundai Motor Company (OTC:HYMTF) has reportedly finalized the sale of its Chongqing factory in China, achieving a deal worth 1.62 billion yuan ($225 million).

This move comes as the South Korean automotive giant reassesses its operational strategy in China amid challenging market conditions.

The Chongqing facility was acquired by Chongqing Liangjiang District Yufu Industrial Park Construction Investment Ltd., a company supported by municipal government funds, reported Bloomberg.

The transaction marks a significant step in Hyundai's ongoing efforts to streamline its operations in the world's largest auto market.

Hyundai and its affiliate Kia Corp. have been navigating a complex landscape in China, where they face intense competition in the rapidly evolving electric vehicle sector.

The Chinese market, despite being the largest globally for automobiles, contributed to only 5% of Hyundai and Kia's sales in the third quarter, as per the report.

The decision to sell the plant, initially listed for 3.68 billion yuan in August, reflects Hyundai's strategic adjustments in response to the evolving automotive market in China.

The report added that the final sale price, significantly lower than the initial listed price, was part of a deliberate move to expedite the process, aligning with Hyundai's broader business objectives in the region.

Also Read: Hyundai Motor Advances EV Focus With Closure Of Two South Korean Plants: Report

Price Action: HYMTF shares closed lower by 0.93% at $41.61 on Tuesday.

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