To expand Hyundai Motor Co.’s presence in China, it signed a 500 billion won ($443.1 million) joint venture with Chinese commercial vehicle maker Sichuan Nanjun Automotive Group.
Hyundai released a statement, revealing that the 50-50 joint venture, which will be set up in Ziyun, in the southwestern province of Sichuan, seeks to sell 90,000 commercial vehicles in 2011 and 300,000 units in 2015.
Hyundai estimates that China's commercial vehicle market will increase to 5.5 million units in 2015, compared to 4.5 million units this year.
In China, Hyundai has been experiencing a surge in sales due partly to the subsidies for fuel-efficient cars that Beijing is offering. For the first time in China in September, Hyundai’s monthly car sales went beyond 70,000 units.
Sales in 2010 are expected to surpass its goal of 670,000 units. With the completion of Hyundai's third Chinese plant in 2012 that would raise its total production capacity to 1 million units, sales are expected to increase further.
Last September, Hyundai inked a deal with Chinese government officials to construct a third plant in China with a production capacity of 400,000 units annually. [via autonews - sub. required]