Hyundai Motor said it would spend KRW2 trillion over the next six years to make and sell more commercial vehicles.
KRW1.6 trillion will be spent on developing new models and engines “to strengthen global commercial vehicle competitiveness”.
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KRW400bn would go to increasing production capacity at the Jeon-ju plant from the current 65,000 units to 100,000 units by 2020.
The automaker expects to hire 1,000 new workers to go with the increased production capacity and will also set up new pilot production and training centres within the Jeon-ju plant.
“Hyundai and Kia need to bolster their weak commercial vehicle business to reach an annual production capacity of 10m vehicles, from about 8m currently,” analyst Suh Sung-moon at Korea Investment & Securities told Reuters.
Hyundai started making heavy trucks in China last year and plans to start building its H350 light commercial vehicles in Turkey in March to enter western Europe, the news agency noted.
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