The South Korean automaker announced in a statement that it intends to join rival truck makers Daimler and Volvo AB in locally manufacturing heavy-duty trucks in China.
While China is the world’s biggest car market, it also represents a huge opportunity for truck makers, as the segment is also blooming. Hyundai Motor Co decided to build the Trago cargo and dump trucks as early as the first half of the year, using a manufacturing facility in Sichuan with an 160,000 vehicle-capacity.
According to the China Association of Automobile Manufacturers, due to advances in China’s urbanization and infrastructure investment, the commercial segment has been on a steady rise – 2013 saw a 21 % growth in medium- and heavy-duty truck sales to 770,000 units.
Hyundai, which already set up shop in China to manufacture passenger cars, has established the necessary 50-50 joint-venture with commercial maker Sichuan Nanjun Automobile Group, building together the new plant in Ziyun, in the Sichuan province. Daimler came to China to produce trucks back in 2012, while Volvo set up shop locally last year.
With a target of reaching at least 400,000 units by 2020, Hyundai aims to increase its role in the commercial vehicle segment, adding production capacity in China, the United States and Turkey.