Korean car maker Hyundai has recognized the need for global automakers to cut costs of their products if they want to compete with local manufacturers in emerging markets such as China, and is currently developing a USD5,000 to USD6,000 car for China and India.
An analyst with Global Insight is quoted as saying that "If Hyundai plans to make a very low-cost car and compete with local automakers such as Chery and BYD, it needs to further open up its (Korean-dominated) supply system."
While Hyundai China are supplied with parts obtained from Korean suppliers in China, the question to Edward Yoon, CFO of Hyundai China, was whether the new car will use Chinese suppliers? According to Market Avenue, he said “We should do that”. He has already allowed Chinese companies to tender for the supply of some parts along with Korean suppliers.
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