Hyundai plans two new factories in China

South Korea's Hyundai Motor Co said two new factories in China will produce more environmentally friendly vehicles and models targeting the world's biggest auto market, as the automaker strives to fend off growing competition from Chinese rivals.

Hyundai said in a statement on Tuesday it has completed its latest Chinese plant, its fourth, in Cangzhou, Hebei province, and will open another one in Chongqing next year. The addition of the two plants - each with annual production capacity of 300,000 - will lift the total number of vehicles it can make in China, its biggest market, by about half to 1.81 million a year.

The focus on green cars is part of a new Hyundai strategy for China. The automaker, which ranks third in China sales together with affiliate Kia Motors, has seen its market share fall to 8.9 percent last year - a seven-year low-from 10.4 percent a year earlier as Chinese rivals lured away customers.