Hyundai Motor Company and Global Group of Algeria signed an agreement to jointly produce Hyundai’s commercial vehicles in Algeria as Hyundai continues to expand its foothold in commercial vehicle businesses around the world.
Under the agreement, Hyundai and Global Group will establish a new plant in the city of Batna, Algeria, to produce its major commercial vehicle models, including the Xcient, Mighty, Solati and County.
The new plant is expected to assemble the aforementioned models from 2020 with an initial annual capacity of about 6,500 units. Hyundai will also strengthen its sales and customer services networks through the joint venture.
The signing ceremony was held today in Algiers, Algeria’s capital, with attendees including Algerian Prime Minister Ahmed Ouyahia, and South Korea’s Prime Minister Nak-yon Lee, as the two nations agreed to strengthen economic and industrial cooperation.
“The joint venture will help Hyundai Motor to better serve Algerian customers with products and services that are specifically developed to meet their needs,” Don Ho Choi, director and head of Commercial Vehicle Export Division at Hyundai Motor said. “Through this partnership, Hyundai will build a momentum for further economic and industrial cooperation between Korea and Algeria”
Hyundai has been in collaboration with Global Group since 2016, which has been a crucial factor in expanding its presence in the Algerian commercial vehicle market in a very short period of time. Hyundai has been the top-selling commercial vehicle brand in the country since 2017 and expects to blossom to a total of about 6,000 units this year, claiming nearly half the market.
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The commercial vehicle market in Algeria has grown rapidly in recent years with the country’s firm economic growth based on stable exports of oil and natural gas. Various developments and construction projects have also helped bolster demands for commercial vehicles.
Market experts forecast annual demand for commercial vehicles in Algeria to grow to as much as 22,000 units by 2025, nearly doubling from the 12,000 units produced this year. Last year’s industry demand was approximately 8,000 units and Hyundai accounted for about 46% of the market with sales amounting to approximately 3,700 units.