By on February 17, 2015

Hyundai Trago Xcient

Hyundai is preparing to enter the U.S. commercial vehicle market through an investment plan to strengthen its current commercial business by 2020.

Reuters reports the automaker will invest ₩400 billion ($363.13 million USD) to boost production of its commercial vans, trucks and buses at home by the start of the next decade, with an additional ₩1.6 trillion ($1.45 billion) to go into R&D over the same period.

Currently, Hyundai is building its Trago Xcient heavy commercial truck in China for the automaker’s largest market — the U.S. is second — and has plans to assemble the H350 light commercial truck in Turkey beginning next month for the automaker’s foray into Western Europe. Meanwhile, the factory in Jeonji, South Korea will see its production capacity rise from 65,000 units per year to 100,000 by 2020.

However, just like its experience in building its market share in the U.S. consumer market, Hyundai’s assault on the commercial market will take some time. Per Korea Investment & Securities analyst Suh Sung-moon, the automaker would need to boost total commercial production capacity to 10 million units, up from the 8 million made annually.

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19 Comments on “Hyundai Bolstering Commercial Business For Go At US Market...”

  • avatar

    That’s one mean looking truck.Out of curiosity why don’t we sell this configuration in the US. Is it legal?

    • 0 avatar

      Cab over trucks are a response to overall vehicle length restrictions; a longer trailer and shorter cab = more potential revenue. The US eased length restrictions 20+ years ago and cab over trucks disappeared almost instantly.

      Cab over trucks are unpopular because:
      -The driver sits over the steer axle, feels every bump in the road.
      -Less driver protection in front end collision.
      -Harder to service.
      -Accident damage more expensive to repair.
      -Engine heat and noise is directly below driver.

      I have driven both; sitting up that high with almost no protection (hood, crumple zone) between you and anything you might run into in an accident is unnerving.

      • 0 avatar

        Exact Opposite reaction from Europeans and others who drive or have driven US Conventionals, they would never drive another Conventional one again. Huge divide in preferences between NA and outside

      • 0 avatar

        How long ago did you drive the cab-over design?

        I have no arguments with the front end collision argument – drove past a front end collision a few years ago where the cab went head first at speed into the tail end of a container trailer that was backing without a spotter at night (all the things both operators were doing wrong boggles my mind) and that driver didn’t make it. Driver later was brought to my hospital and was pronounced dead. I’ve also seen a lot of serious lower leg injuries in cab-over accidents in vans as well.

        That said, seems to me that the cab-over design has advantages you’re not mentioning here, starting with ease of maneuvering in space restricted areas.

        • 0 avatar

          Whole extended discussions on Cabovers v Conventionals on the net. Outside of NA, Australia, NZ, and South Africa, Conventionals do not exist
          They are a disappearing species globally. Still you have Cabovers gradually making a comeback in NA. As I have mentioned Large Motorhomes, Tour Buses are Cabovers in the US, but they for some strange reason are not included in the Conv v Cabover arguements

    • 0 avatar

      Many in the US think these Trucks are more dangerous, than a US Conventional Truck. A lot of strange thinking on that one, no concern about Conventional Bus or a Class A Motorhome being the same , but a Conventional Truck is the way to go

    • 0 avatar

      There is a mistake in the subject of the article. Hyundai is looking at entering the Commervial Van Market NOT heavy Truck market, with it’s version of the Sprinter

  • avatar
    John R

    “However, just like its experience in building its market share in the U.S. consumer market, Hyundai’s assault on the commercial market will take some time.”

    If this is an allusion to Hyundai’s work to win over retail customers for the past decade in spite of an earned, but ancient, rep (which has been mostly succesful) I would argue that the same impediments may not exist in the commercial market.

    Hyundai is a HUGE shipping and manufacturing concern and has been long before making automobiles. Individuals involved in those sectors more than likely know this.

    I feel that there is merit in Hyundai having a more optimistic outlook.

    • 0 avatar
      Big Al from Oz

      John R, don’t discount the Kia influence either.

      Kia used to be the worlds second largest producer of military vehicles.

      I think the original Sorento was built on a modified platform for a military vehicle.

      For their size the original Sorento weighed in at around 2 200kg (4 840lbs).

      The 3.5 V6 was Mitsubishi engine. The CRD Sorento we had made for a cheap tow vehicle for our Grey Nomads. They were used to tow caravans around Australia and did so quite reliably, with lots of comforting bling.

      I would love to see the Koreans put their hands to a mid size pickup.

      • 0 avatar

        The first Sorento was based on a Hyundai as well, albeit one derived from Mitsubishi (Pajero).

        I rather liked the first gen Sportage, before it got all soft and front wheel drive. The original was based on a Mazda truck-like ladder frame (Bongo), had part time 4wd usually paired with a manual and including Low Range, and Mazda’s excellent non-interferance 2.0L I-4 (although you guys down under and elsewhere probably had other engines avalable, Im thinking a diesel is a strong possibility).

        I like(d) the Kia Borrego for the very short stay it had on the American market. I believe its still sold elsewhere with the Mohave name. I checked one out at a Ford dealer this past summer, but decided not to test drive it because it was 2wd (I despise 2wd SUVs, though theyre very common in my area).

        • 0 avatar
          Big Al from Oz

          Actually the Hyundai Terracan was based on a Kia Sorento Chassis. The Terracan body was completely different.

          The Sorento was the “wide body” version.

          Only the Engine/Drivetrain has any thing to do with the Pajero.

          The 3.5 V6 was straight from a NJ Pajero and built by Hyundai.

  • avatar
    daniel g.

    Don’t now Hyundai build big heavy trucks. My respect.
    The best irony in Argentina: Honda official Service use Hyundai HD78.
    The truck in the photo is new to me, but respond to a restriction in total long of the truck. Use less cabin to increase the cargo space. At least in Mercosur to my knowledge.

  • avatar
    el scotto

    Something rarely discussed on here is Total Cost of Ownership (TCO). Fleet owners and managers are OCD about this. Can, or will Hyundai prove they offer lower TCO? That will be the bottom line. Then again they may offer a large trucking company a new fleet at below cost just to get their trucks on the road and in popular use. Imagine Schneider or CRST using Hyundais.

  • avatar

    It will be a large uphill battle for Hyundai to gain inroads in the NA market. The ties that bind the large fleet operators and their manufacturers are deeply entrenched.

  • avatar

    might be a tough sell, if all they make is cabovers.

    im sure NVH and safety have improved greatly over the past 35 years as evidenced by the benz and volvo EU videos on youtube, but its still going to be a tough sell

    • 0 avatar

      They will likely not offer a cabover semi here, I believe the commercial vehicles we will see in NA will consist of vans similar in size to Ford’s Transit. They may even offer a medium duty cabover truck, something like a Mitsubishi Fuso or Isuzu Elf.

      Ford builds an excellent cabover semi called the Cargo. It was very recently redesigned. It is not offered in North America, though I wish it was. I could see it used as a garbage truck, as theyre usually cabovers.

    • 0 avatar

      European Cabovers are now the preferred option for younger Commercial Drivers in Australia, New Zealand and South Africa , where both types operate

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