The Bayon, introduced in 2021, has been particularly successful, with global sales more than doubling from 20,243 units in 2021 to 59,136 in 2023. (Image courtesy of Hyundai Motor Co.)
SEOUL, Aug. 21 (Korea Bizwire) – In a remarkable turnaround story, Hyundai Motor’s Turkish plant has transformed from a struggling venture to a vital hub in the automaker’s global operations, boasting an industry-leading utilization rate of 119.9% in the first half of this year.
The Hyundai Assan Otomotive Sanayi (HAOS) facility, located in Izmit, Turkey, has outperformed all 13 of Hyundai and Kia’s global plants, capitalizing on Turkey’s large domestic market of 80 million people and its relatively robust economic growth of 4.5% last year.
Established in 1997 as Hyundai’s first overseas plant with an initial capacity of 100,000 units annually, HAOS struggled for years, earning the unflattering nickname “ugly duckling” due to consistent losses until the early 2010s.
However, Hyundai’s aggressive management strategy, which included doubling the plant’s capacity to 200,000 units in 2013 and transferring production of popular models like the i10 from its Indian operations, has paid off handsomely.
The plant now produces four models: the i10 and i20 compact hatchbacks, the high-performance i20N, and the Bayon small SUV.
The Bayon, introduced in 2021, has been particularly successful, with global sales more than doubling from 20,243 units in 2021 to 59,136 in 2023, according to data from MarkLines.
HAOS’s strategic location at the crossroads of Europe, Asia, and Africa has made it a crucial export base for Hyundai.
In 2023, the plant produced 242,100 vehicles, nearly double its 2020 output, generating sales of 3.02 trillion won and a net profit of 198.5 billion won.
Industry analysts expect Hyundai to begin electric vehicle production at the Turkish plant as early as next year.
This speculation is fueled by POSCO International’s announcement of a contract to supply 550,000 drive motor cores for small electric vehicles to the plant from next year through 2034.
Kevin Lee (kevinlee@koreabizwire.com)
