Hyundai Motor confirmed plans to produce hydrogen powered commercial vehicles at one of its Chinese plants to help lift its EV sales in the country.

The head of Hyundai's commercial vehicle business division, Lee Incheon made the announcement at the China EV100 Forum in Beijing earlier this month.

Lee had previously indicated, in August 2019, that the company was considering launching production of hydrogen fuel cell electric vehicles (FCEVs) in China by 2023.

The hydrogen powered commercial vehicles are expected to be produced at company's underperforming Sichuan Hyundai Motor Company commercial vehicle joint venture in Ziyang city in Sichuan province.

Last year, Hyundai said it wanted to take full ownership of the 50:50 Sichuan-based joint venture which makes a range of medium and heavy trucks and buses, before implementing a major recovery programme. The factory is estimated to have produced fewer than 4,000 vehicles in 2019.

According to industry sources, Hyundai sales in China declined by over 13% to 686,000 units last year, down from 791,000 units in 2018, which represents a significant underperformance in an already weak market.

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