Why these Korean cars will be made in China
By Stephen Ottley · 02 Mar 2026
The numbers don’t lie. Australians love Chinese-built cars.Chinese-made vehicles accounted for more than 221,000 sales in Australia in 2025. That was nearly 20 per cent of all cars sold locally, making it the third-largest country to send cars here behind only Japan and Thailand. That figure represents a 25 per cent increase on 2024, and a massive 190 per cent jump from five years ago.Which explains why the newest model from Hyundai, a brand synonymous with sourcing its cars from South Korea, has turned to China for help. The all-new Elexio is the sister-model to the Kia EV5, both are built on Hyundai’s globally-developed E-GMP electric vehicle platform, but both are manufactured in China in a bid to cut production costs.In theory this is working well, with the Elexio priced from $59,990 drive-away as its introductory price, which is much cheaper than the similarly-size, but South Korean-built Ioniq 5, which starts at $76,200 plus on-road costs.Kia’s EV5 range is priced from $56,770 for the entry-level Air Standard Range variant, but it does stretch up to $71,770 for the GT-Line Long Range. Speaking at the launch of the Elexio, Hyundai management made no secret that it has become more open minded to where its cars come from, rather than sticking to its traditional South Korean base.“We've been pretty open to ,” said Tim Rodgers, Product Development Manager for Hyundai.“We're currently sourcing from Turkey and Czech Republic already, and we've got factories everywhere. We’re constantly studying and assessing the viability. So anything that pops up onto the radar that becomes viable is just a huge benefit to us, especially as a right-hand-drive model.” But there is still a clear gap between these Hyundai-Kia Chinese models and those from Chinese brands, such as Geely, Leapmotor and Deepal, which are more than $15,000 cheaper in some cases.Hyundai Australia Chief Operating Officer Gavin Donaldson believes some Chinese companies are "pulling other levers" to achieve those prices, which is a polite way to suggest these brand’s Australian prices are subsidised by head office.Rodgers, though, says Hyundai Australia’s isn’t looking to source more cars from China simply because production costs are lower. “I mean it's not just that. We've got a whole R&D facility in China as well, right,” he explained. “So we are leveraging that, the proximity to us to be able to assess our market, visit us, support our market. It's a level of support that's great to have from not just Korea but China as well. So a huge benefit.”While the EV5 is the only Kia built in China, Hyundai’s joint-venture operation in the country, Beijing Hyundai, makes several models including the Elantra (i30 Sedan), Sonata, Tucson and Santa Fe - although not all are available in right-hand drive.Beijing Hyundai has actually suffered a steep sales decline in recent years, as the domestic Chinese brands emerged as serious players both home and abroad. The creation of the research and development centre mentioned by Rodgers came in 2024, as the company looked to improve its fortunes and fights back against the likes of BYD, GWM and Chery in both China and Australia.What this ultimately means for Australian customers remains to be seen, with Hyundai management not revealing any new models for our showrooms anytime soon, but there is clearly an openness to cars built not only in China but other low-cost manufacturing bases in order to better compete in the changing market.