South Korea's Hyundai Motor Corp said yesterday it will introduce its first luxury sedan to China next year to compete with Mercedes-Benz and BMW models.

The move is part of a strategy to boost falling sales.

The new luxury sedan, under the developing code name of BH, will be launched in April in China through imports, said Young-Hwan Cho, marketing director of Hyundai Motor Company's China regional headquarters in a Beijing telephone interview.

"The official name and pricing strategy hasn't been decided yet," said Cho. "But it will compete with BMW 5 Series and Mercedes-Benz E Class sedans in China's high-end luxury-car segment."

The BH models are expected to hit Hyundai's home market soon.

Seoul-based Hyundai will also import a revamped coupe next year to China to further entice the growing number of affluent Chinese auto buyers.

Both Mercedes-Benz and BMW saw sales rise more than 30 percent for the first half, beating the 25 percent for the overall vehicle sector.

Hyundai has been losing customers in China because of a lack of new models and intensified competition.

A month earlier, Hyundai's annual sales on the world's second-biggest auto market fell by about 16 percent to 260,000 units after its half-year sales dropped 23 percent to 91,864 vehicles.

The flat sales forced the car maker to cut prices by seven to 13 percent from this month for the Accent compacts and the Elantra and Sonata sedans, made by Beijing Hyundai Motor Co. Hyundai is building a second plant in China with a production capacity of 300,000 units annually.