Hyundai to spend $1.8 billion for commercial vehicle offensive

Article by Christian A., on February 21, 2015

Hyundai Motor Co. is planning to invest around $1.8 billion by the end of the decade to finance a major offensive in commercial vehicles as it bids to keep up with advancing rivals in the world stage. Hyundai is expecting a global commercial vehicle market surging nearly 30 percent in each of the next five years.

Last year, the South Korean carmaker sales dropped in its home turf, in China and other markets. According to Hyundai, it will earmark KRW400 billion ($363.13 million) to increase output of vans, trucks and buses in South Korea by 2020, and has allocated KRW1.6 trillion for research and development in such vehicles through the five-year period.

Hyundai said in a statement that it has plans to roll out "premium models in North America and Europe." The carmaker saw its overall market share in the United States drop in 2014, partly because it offers few pickup trucks and sport utility vehicles, which demand surged further as oil prices dropped. Analysts have remarked that for Hyundai to introduce commercial vehicles in the US and challenge established carmakers will take considerable time.

Suh Sung-moon, an analyst at Korea Investment & Securities, remarked that Hyundai and Kia need to “bolster their weak” commercial vehicle business to reach an annual production capacity of 10 million vehicles.

Hyundai commenced building heavy-duty trucks like the Trago in China in 2014 for the local buyers and would begin production of H350 light commercial vehicles in Turkey next month for Western Europe.

The carmaker recently disclosed that it is planning to hike annual production capacity at its Jeonju site by 54 percent to 100,000 commercial vehicles by the end of the decade, from the current 65,000.

Hyundai Motor Group announced in January plans to spend $73 billion over four years after the South Korean government called for conglomerates to spend more to help revive its biggest economy.

Topics: hyundai

If you liked the article, share on:

Comments

Recommended

What can we expect from Mercedes-Benz for this year and the next? It seems all matters have been laid out with luxury carmaker’s vehicle lineup for 2017 and 2018. As...
by - September 19, 2017
It was in February when Ford revealed the new Fiesta ST, just before it made its official debut at the 2017 Geneva Motor Show in March. But it is not...
by - September 19, 2017
If you search for the word "grille" on the dictionary, what you will get is a definition that says "a grating forming a screen or barrier, or an ornamental one...
by - September 19, 2017
We recently heard that Italian automakers, Ferrari and Lamborghini, are not so keen on building an all-electric sports car just yet. On the contrary, Bentley has just confirmed that there...
by - September 17, 2017
Back in 2013, Nissan introduced the IDx Concept at the Tokyo Motor Show. When the audience first saw this, a lot of people got excited to see a lightweight sports...
by - September 17, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries