Hyundai Bolstering Commercial Business For Go At US Market

Cameron Aubernon
by Cameron Aubernon

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.

Cameron Aubernon
Cameron Aubernon

Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.

More by Cameron Aubernon

Comments
Join the conversation
8 of 19 comments
  • Daniel g. Daniel g. on Feb 17, 2015

    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.

    • RobertRyan RobertRyan on Feb 17, 2015

      Hyundai is copying a European Truck SCANIA or Volvo, rather than copying Japanese Heavy Truck influence

  • El scotto El scotto on Feb 17, 2015

    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.

  • Stckshft Stckshft on Feb 17, 2015

    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.

  • SoCalMikester SoCalMikester on Feb 17, 2015

    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

    • See 2 previous
    • RobertRyan RobertRyan on Feb 17, 2015

      @JohnTaurus The Ford Cargo, built in Brazil and Turkey, but not in the same league as the Europeans and even the Hyundai

Next