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BEIJING: Hyundai Motor Co’s China joint venture sold its factory in Chongqing for 1.62 billion yuan (US$225 million) — less than half the price sought when the plant was listed for sale in August.

The factory was sold to Chongqing Liangjiang District Yufu Industrial Park Construction Investment Ltd, an entity backed by municipal government funds.

The sale is part of the South Korean automaker’s efforts to optimise operations in China, Hyundai said Wednesday.

Hyundai and Kia Corp are facing tough decisions about how they plan to operate in China, which although the world’s largest auto market, accounted for just 5% of their sales in the third quarter, as they struggle in the nation’s rapid transition to electric vehicles.

The plant was initially advertised for 3.68 billion yuan in August, before the price was slashed to 2.58 billion yuan just two months later.

The sale was finalized late last year, Hyundai said.