Hyundai plans to spend around $1.8 billion by 2020 on a major offensive in commercial vehicles, which includes entering the US market. In 2014, the world’s fifth-largest automaker has seen commercial vehicle sales fell both at home and in export markets.
Hyundai announced it will invest 400 billion Korean won ($363 million) to boost production of vans, trucks and buses in Korea by 2020. The automaker also said it has allocated 1.6 trillion won ($1.4 billion) for research and development in commercial vehicles by the end of the decade. The investment will be used to develop new models and engines.
According to analysts, launching commercial vehicles in the United States and challenging established rivals will take considerable time. The U.S. is currently Hyundai’s second-biggest overseas market for passenger cars after China.
Hyundai started building heavy-duty trucks such as the Trago in China last year, and plans to start producing H350 light commercial vehicle (pictured) in Turkey in March for European markets.
The automaker also announced plans to boost annual production capacity at its plant in Jeonju, Korea, by 54 percent to 100,000 commercial vehicles by 2020, up from 65,000 now.
Story references: Reuters
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