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South Korean automaker Hyundai Motor Company will build a third assembly plant in China, which would have a capacity to make 400,000 vehicles a year. This new plant is aimed to meet rising consumer demand in China, the world’s largest auto market. The new plant is expected to boost Hyundai’s production capacity in the country to 1 million vehicles a year. The construction of the plant, which will be located in Beijing, is scheduled to be completed in 2012.

Beijing Hyundai Motors Co. Ltd., a 50-50 joint venture between Hyundai and Beijing Automotive Industry Holding Co. formed in 2002, currently operates two plants in Beijing. In November, the joint venture’s President Noh Jae Man said that it was planning to spend about $800 million to build a third Chinese plant that would be completed in 2011.

The automaker aims to improve sales in China to 670,000 vehicles this year from 570,000 last year, to meet with the country’s growing demand. The automaker sold about 437,000 units in the country during the first eight months of the year.

The company’s sales in China grew 18% this year, three percentage points higher than the country’s industry average.

According a report from Reuters quoting the Russian government, South Korea-based Kia Motors and Hyundai are in discussions with IzhAvto to assemble cars at its Russian plant.

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