After saying they would and then they would not, Hyundai are finally confirming that they will launch a sub brand which will cater towards economy buyers in the Chinese market. GM, Nissan, Honda (and Honda again, with a different manufacturer) have launched sub brands with their Chinese partners, the new Hyundai brand is expected to launch next month and will be based on the current generation of Hyundai Elantra.

Hyundai’s first model will be a pure electric model and should be on show at the Guangzhou Auto Show next month, the brand name has not yet been announced but it is expected to be put into production in 2012.