[Courtesy of Hyundai Motor]
SEOUL -- Hyundai Motor, a top carmaker in South Korea, sealed a strategic alliance with China's energy company, Sichuan Energy Industry Investment Group, to rejuvenate a troubled commercial vehicle joint venture targeting Chinese consumers with an injection of new capital.
Sichuan Hyundai Motor, a joint venture established by China’s Sichuan Nanjun Automobile Group and Hyundai in 2012, has posted poor sales due to competition with German and Chinese automakers. Sichuan Energy acquired a 50 percent stake in the joint venture from Nanjun Auto.
In a ceremony Monday in Seoul, Sichuan Energy and Hyundai agreed to promote their commercial vehicle partnership in development, production, sales and other areas. They will participate in capital increase together to bolster the competitiveness of their joint venture.
Hyundai, which produces Xcient and New Mighty trucks at home, said the joint venture in China would seek to develop five new commercial vehicles by 2022 and export Chinese strategic models to Southeast Asia, Africa and the Middle East. An electric truck would be released next year.
"I hope the joint venture will lead to a closer partnership between Sichuan Province and Hyundai Motor," Sichuan Province governor Yin Li was quoted as saying in a statement.
Hyundai Motor promised to enhance competitiveness, efficiency and sales capabilities of the joint venture, based on thorough market analysis, development strategies and reinforced research and development.
The South Korean company predicts demand for commercial vehicles will rise gradually in Indonesia and other ASEAN members. In December last year, Hyundai and Indonesia's Artha Graha (AG) Group set up a joint venture in Jakarta to assemble trucks and other commercial vehicles targeting Southeast Asia.
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