HYUNDAI, KIA MOTORS TO OPEN ASSEMBLY PLANTS IN CHINA.

NANJING, China, April 1 Asia Pulse - Hyundai Motor Corp., along with its sister company Kia Motors, is to produce small and mid-sized automobiles in China from October, under a strategic relationship with their Chinese counterparts, according to company sources.

Under the tie-ups, Hyundai Motor and Kia Motors have secured a foothold in the world's most populous country.

Hyundai will open its plants in northern Beijing and Kia in southern Shanghai in a joint effort to claim a bigger piece of China's auto market.

"Hyundai and Kia will separately develop and sell their own models, including passenger cars and recreational vehicles (RVs), as they do in Korea. They hope to develop into a comprehensive auto group in China," said Park Byung-jae, vice chairman of the Hyundai-Kia Motor group.

By 2005, China is expected to purchase 500,000 locally produced Korean vehicles - 300,000 from Kia Motors and 200,000 from Hyundai Motor.

The venture into China is in line with Hyundai's goal to be the world's fifth largest automaker by 2010, with the ability to produce five million vehicles annually.

China, which became a member of the World Trade Organization (WTO) at the end of last year, unveiled a plan to protect its own car industry. Under the plan, the Chinese government will support a group of eight car companies, which consist of "three big", "three medium" and "two small" ones.