Hyundai Motor and Chinese partner Jiang Huai Automobile have signed a contract to jointly build commercial vehicles in China, according to Agence France-Presse (AFP).
Go deeper with GlobalData
Hyundai Motor reportedly plans to invest $US780 million dollars by 2010 in the joint venture plant which will eventually make 150,000 trucks and buses per year in Anhui, China.
“This project is part of our plan to secure an annual capacity of one million vehicles in China by 2008,” Hyundai said on Wednesday in a statement issued after signing a memorandum of understanding with the Chinese partners.
The South Korean carmaker reportedly said it expects huge demand for commercial vehicles in China where a series of large-scale infrastructure construction projects are under way or planned.
The Chinese firm has assembled the Starex, a Hyundai van popular among South Koreans, as part of a technology sharing agreement reached between the firms in February, 2003.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataHyundai Motor has been aggressively expanding its presence in China.
Hyundai, which has already invested $350 million in a separate 50-50 joint venture in China with Beijing Automobile Industry Holdings, has vowed to invest an additional $740 million in it.
Once its investment program is completed, Hyundai will have an annual production capacity of 1.03 million units in China, AFP said.
