(Yicai Global) April 26 -- The joint venture between China’s BAIC Group and South Korean carmaker Hyundai will start over in China, the general manager said as executives from the two companies prepare to meet at the ongoing Shanghai Auto Show to discuss the future of their JV.

The chief executive officer of Seoul-based Hyundai has told all personnel responsible for research, modelling and products to attend the Shanghai Auto Show, said Wu Yijun, general manager of Beijing Hyundai.

This was has never happened before and indicates that Hyundai has realized the difference between development in the Chinese market and that in the global market, Wu said.

Beijing-based BAIC and Hyundai are looking to enhance cooperation and increase investment to make their JV more competitive with local carmakers, Wu said. Compared with Chinese companies and startups, the price of electric cars produced by JVs is on the high side, he added.

Beijing Hyundai, whose sales in China slumped more than 70 percent last year from 2016 to 260,000 units, should diversify procurement channels to ensure that its new energy vehicles stay competitively priced, Wu said.

With the rise of Chinese brands and the sliding price of vehicles made by JVs, the market share of South Korean cars has been squeezed. To counter this, the two parties also intend to team up with information and communications technology enterprises, local companies and other vehicle startups.

Beijing Hyundai plans to roll out one multi-purpose auto, two sedans and three sports utility vehicles in the next three to five years to achieve annual sales of 300,000 hybrid vehicles a year by 2025, Wu said.

The carmaker intends to speed up the introduction of its IONIQ marque and release four or five new electric cars in the next three to four years which will be based on an exclusive EV platform, Wu said.

Editors: Shi Yi, Kim Taylor