Cars

    Hyundai pursues commercial car venture in China

    (Agencies)
    Updated: 2010-10-22 13:48
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    South Korea's largest automaker Hyundai Motor Co plans to set up a commercial vehicle venture with Ziyang Nanjun Automobile Co in China next year, in a move to expand in the world's biggest auto market, Bloomberg reported Friday.

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    The companies signed an agreement on Thursday to form the partnership, in which each will have a 50 percent share, Bloomberg said, citing a Hyundai statement.

    The 500 billion-won ($443 million) venture will take over Ziyang's commercial-vehicle operation, which has annual output capacity of 120,000 vehicles, according to Bloomberg.

    It will target 90,000 heavy truck and bus sales in China next year, increasing to 300,000 by 2015, the statement said.

    Sales of trucks and buses in China is expected to reach 4.5 million units this year and may total 5.5 million by 2015, fueled by development in inland regions, Hyundai said.

    The agreement marks Hyundai's fourth attempt to form a commercial-vehicle venture in China, according to Bloomberg.

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