Hyundai Motor Co. will spend $1.8 billion by 2020 to expand its commercial-vehicle market share and enter the U.S. commercial heavy-duty truck market, Reuters reported.
The South Korean manufacturer said it will increase production of vans, trucks and buses in Korea by 2020 and plans to introduce “premium models in North America and Europe,” according to Reuters.
“Hyundai and Kia need to bolster their weak commercial-vehicle business to reach an annual production capacity of 10 million vehicles from about 8 million currently,” analyst Suh Sung-moon at Korea Investment & Securities told the news agency.
Hyundai started making heavy-duty truck, Trago Xcient, in China in 2014 for the local market.
The company plans to start building its H350 light commercial vehicles in Turkey in March to enter Western Europe, Reuters reported.