As China solidifies itself as the world’s largest auto market, all automakers are looking to build a competitive presence there. Hyundai is no exception, but rather than taking the usual route, the largest South Korean automaker is investing heavily in the commercial vehicle business in China.
Under a deal between Hyundai and Chinese commercial truck maker Baotou Bei Ben Heavy-Duty Truck Co., the two companies are looking to sell 100,000 heavy-duty commercial trucks in China by 2014. The deal is a 50-50 joint venture that will help both companies expand their business in this burgeoning auto market.
Hyundai is already a formidable automaker when it comes to passenger car sales in China, but Hyundai is determined to build its presence in the country and eventually offer a full-line of commercial vehicles in addition to its expanding its passenger car business. For Hyundai, this venture will serve as a stepping stone to become the world’s most versatile and comprehensive automotive manufacturer in the world.
Together with its Kia Motors affiliate, Hyundai has been aggressively expanding in the U.S. and in developing counties as well. A Florida Freightliner trucks dealer expects that Hyundai’s growing reach in global markets will continue to fuel their commercial vehicle ambitions. Having a healthy commercial truck business already, Hyundai is hoping to sell about 200,000 commercial vehicles worldwide by 2013 with the help its new venture in China.
Hyundai isn’t the only automaker clamoring for more market share in the commercial vehicle segment. Used Trucks Seattle points out that Nissan is also eager to boost its reputation as a commercial truck builder. For now, these automakers are focusing on the markets they deem will have the most room for growth; Hyundai will be focusing on China and Nissan will concentrate on the U.S.
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