Hyundai announced it plans to establish a commercial vehicle joint venture with one of the Chinese commercial vehicle manufacturers.
Hyundai experienced explosive passenger car sales gains in China in 2009 and the company now seeks to repeat the success in the world's largest auto market through commercial vehicles.
The Korean largest car maker intends to offer a complete line-up of commercial vehicles in China with an aim to sell around 100.000 units of its trucks by the end of 2014
Hyundai announced it has signed an agreement to create a joint venture with Baotou Bei Ben Heavy-Duty Truck. Under the agreement, Hyundai and its commercial vehicle partner will both invest $400 million to establish a 50-50 joint venture.
The joint venture between Hyundai and Baotou Bei Ben Heavy-Duty Truck will first unveil a redesigned Baotou Bei Ben model, while two year later the ventzre will unveil a completely redesigned model, which will feature Hyundai's advance powertrain technology.
Image: Baotou Bei Ben heavy truck.
"Entering China's commercial vehicle market is essential in establishing Hyundai's reputation as the most comprehensive car manufacturer in the world's largest auto market," Mr. Choi, Hyundai's Vice Chairman, said at the signing ceremony. "Our business in China will play a pivotal role in helping us achieve our global sales target of 200,000 units in commercial vehicles by 2013."