SEOUL- Hyundai Motor Co. , South Korea's top auto maker, said on Thursday it was considering setting up a new engine plant in China as it aims to increase auto production in the world's fastest-growing market.

Hyundai said in a filing to the local exchange it was considering a factory in Shandong, China, to produce up to 400,000 passenger vehicle engines per year.

It anticipated the plant would start production from the end of 2008 to reach its full capacity later, the company said.