South Korea’s top automaker Hyundai Motor Co. has changed its Chinese partner for commercial vehicle production to Sichuan Energy Industry Investment Group Co., an arm of the Sichuan provincial government, to expand footing in the world’s biggest electric bus and truck market.
Hyundai Motor signed a strategic partnership agreement with its new partner at its headquarters in Yangjae-dong, southern Seoul.
Sichuan Hyundai was established by Hyundai Motor with Chinese commercial vehicle maker Sichuan Nanjun Automobile Group.
Sichuan Energy Industry Investment Group will assume the 50 percent stake in Sichuan Hyundai from Sichuan Nanjun Automobile Group. The partnership covers R&D, production, sales, after-sale services, and logistics.
Hyundai Motor hopes to gain traction in the commercial vehicle front in China with new partnership in the world’s fastest growing electric vehicle market. The public energy company is engaged not only in energy infrastructure construction and energy projects in Sichuan Province but also battery, finance, and service-related businesses.
Hyundai Motor Co.`s Shengtu (Mighty). [Photo provided by Hyundai Motor Co.]
Sichuan Hyundai will develop five new commercial vehicle models by 2022 to expand its current lineup of six models of which three are under Hyundai Motor brand and three under Chido brand. It will release electric truck model next year.
Sichuan Hyundai will also export two trucks developed exclusively for the Chinese market - Changho (Xcient) and Shengtu (Mighty) - to other regions including Southeast Asia, Africa, and the Middle East.
An unnamed official from Hyundai Motor said that the company plans to enhance competitiveness of Sichuan Hyundai to become a leading commercial vehicle manufacturer in China and play key role in development projects promoted by the Chinese government in the country’s western region.
By Lee Seung-hoon and Lee Eun-joo
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