Hyundai Motor has signed a joint venture agreement worth US$443.1m with Chinese commercial vehicle maker Sichuan Nanjun Automotive Group according to Korean reports.
The 50:50 deal is targeting commercial vehicles sales of around 90,000 models in 2011, with this rising significantly to 300,000 by 2015.
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Production will be in Ziyang City in Sichuan province, while electric and low-carbon vehicles will also be manufactured.
Chinese media are indicating the JV will be known as the Sichuan Hyundai Automobile Company.
Ziyang in Western China is fast emerging as a specialist in automobile technology, with existing capability in train locomotives and trucks, while diesel motors and tyres are also manufactured in the city.
China’s commercial vehicle market is expected to grow to 5.5m units in 2015, from 4.5m units this year say Korean media.
Hyundai Motor signed a deal with China last month to construct a third plant in the country with a capacity of 400,000 units per year.
Hyundai was not immediately available for comment.
