Korean automakers, petrochemical companies hope to boost presence in China

Hyundai Motor Co.‘s AVANTE N models [Photo provided by Hyundai Motor]

South Korean companies are boosting efforts to expand presence in China, the world’s second-largest economy and the top market for many industry sectors, amid the intensifying war between Washington and Beijing in advanced technologies such as chips and batteries.

Korea’s top auto giant Hyundai Motor Group is set to unveil a number of new high-performance internal combustion engine vehicles and electric vehicles (EVs) at the Shanghai International Automobile Industry Exhibition that will kick off on Tuesday.

China is the world’s largest auto market.

Hyundai Motor Co., in particular, will introduce its high-performance brand “N” to Chinese consumers at the Shanghai auto show, the company said on Sunday. It will also premier the all-new Elantra N sports sedan with plans to release the customized sedan in China in October.

Hyundai Motor will also showcase 8 other N models at the motor show, including the Tucson N Line customized for China, China-exclusive Lafesta N Line, and RN22e, a high-performance prototype electric car based on the Ioniq 6. It will also premier Mufasa, a compact sport utility vehicle (SUV) that strategically targets the Chinese market.

Hyundai Motor’s smaller sibling Kia Corp. will announce a vision for the Chinese EV market at the Shanghai motor show. Kia unveiled its China-focused concept EV5 last month.

Hyundai Motor Group’s strategy is two-tier.

While Hyundai Motor will target northern China with its sports sedans based on its production facilities in Beijing, Kia will focus on its EVs based on its production facilities near Shanghai, where the EV penetration rate is quite high.

The automakers are set to face fierce competition in China, however, as the country is the world’s largest market for pure battery-powered EVs that accounted for 63.3 percent of global sales last year.

Rendering of LG Chem Ltd. booth at CHINAPLAS 2023 in Shenzhen, China [Photo provided by LG Chem]

Korean petrochemical companies are also hoping to boost presence in China amid expectations that the Chinese economy will recover following its border reopening last year.

LG Chem Ltd. and other Korean petrochemical companies are attending the CHINAPLAS 2023 in Shenzhen that kicked off on Monday. CHINAPLAS is one of the world‘s three largest plastics and rubber trade fairs, and the largest in Asia.

“We were expecting improved performance in China following the reopening but we haven’t seen that yet,” said one unnamed official from a Korean petrochemical company. “Improving the sales in China is an important task amid the overall sluggish industry.”

Korean petrochemical companies are expected to target the Chinese market with eco-friendly and future materials.

At CHINAPLAS, LG Chem is showcasing decaying and recycled plastics in its 398-square-meter booth, the largest among Korean companies. Lotte Chemical Corp. and Lotte Fine Chemical Co. are presenting separators for lithium-ion batteries, anode foils, and high-function materials. SK geo centric Co., is displaying products using chemically recycled waste plastics.

“Despite the tension between the U.S. and China, we cannot turn our backs on the neighboring market,” said an industry insider who asked to be unnamed.