Hyundai Motor gets new partner in ChinaHyundai Motor will revamp its commercial vehicle business in China with a new partner and plans to release five new models by 2022.
Hyundai Motor announced Monday that it has partnered up with Sichuan Energy Industry Investment Group to expand its Chinese commercial vehicle business.
Sichuan Energy Industry Investment Group acquired 50 percent of Sichuan Hyundai Motor from Nanjun Auto. Sichuan Hyundai Motor is a joint venture started by Hyundai Motor and Nanjun Auto in 2013 through a 50:50 investment. Through the latest acquisition, Nanjun Auto will completely step out of the picture.
The previous joint venture used to act as the sales and product headquarters of Hyundai Motor’s commercial vehicle business in China.
Hyundai Motor said it will enhance product quality, production efficiency and sales with its new partner.
The Sichuan Energy Industry Investment Group is a state-run energy firm that also produces batteries and operates in the finance industry in China.
“The new partnership will enable diverse businesses, including new energy vehicles and logistics,” said the Korean carmaker in a statement.
Hyundai Motor currently has six commercial vehicle models in China, three of which carry the Hyundai Motor emblem and three that are branded as Chido, a commercial-vehicle brand under Hyundai in China.
On the back of the new joint venture, Hyundai Motor also said it will introduce electric commercial vehicles to the Chinese industry by next year. It pledged to launch five commercial vehicles - either new or revamped - by 2022.
It will also export some of the commercial vehicles manufactured in Sichuan to other countries including in Southeast Asia and the Middle East.
“Exports will start with a small portion of Chinese strategic models equivalent to Korea’s Xcient and Mighty, expand gradually and also increase the operation rate of the plant as well,” Hyundai Motor said in a written statement.
“The latest partnership is expected to generate a significant synergy effect since Sichuan Energy Investment Group is Sichuan’s representative state-run firm while Hyundai Motor possesses top-notch technology in commercial vehicles,” said a Hyundai Motor official.
“Through continuous investment and R&D effort, Hyundai Motor will strive to be a leading player in China’s commercial vehicle industry,” the official added.
BY JIN EUN-SOO [firstname.lastname@example.org]