South Korea’s Hyundai Motor said on Friday that it had signed a 500 billion won ($443.1 million) joint venture with China’s commercial vehicle maker Sichuan Nanjun Automotive Group to expand its presence in the growing segment.
The 50-50 joint venture, which will be established in Ziyun city in the south western province of Sichuan, aims to sell 90,000 commercial vehicles in 2011 and 300,000 units in 2015, Hyundai Motor said in a statement.
China’s commercial vehicle market is expected to grow to 5.5 million units in 2015, from 4.5 million units this year, Hyundai said. Hyundai, the world’s No.5 car maker along with its affiliate Kia Motors, is enjoying a surge in sales in China, fuelled by Beijing’s subsidies for fuel-efficient cars.
Monthly car sales exceeded 70,000 units for the first time in China in September, and 2010 sales are expected to exceed the target of 670,000 units. Sales will further increase when Hyundai’s third Chinese plant will be completed in 2012, which will push up Hyundai’s total production capacity to 1 million units.
Hyundai Motor in September signed a deal with Chinese government officials to build a third plant in China with production capacity of 400,000 units per year. Beijing Hyundai Motor, a joint venture between Hyundai Motor and Beijing Automotive Industry Holding Corp (BAIC), currently runs two plants in China.