Hyundai May Hike Stake in Chinese Truck Venture

Hyundai Motor Co. says it may boost ownership in its struggling 50:50 commercial truck venture in China, Reuters reports.

The company, called Sichuan Hyundai Motor, was launched in 2013 with China’s Sichuan Nanjun Automotive Group. The facility is Hyundai’s sole commercial vehicle operation in China.

The partnership’s output plunged to 12,200 trucks and buses in 2018 from 28,800 units in 2017, Reuters says. The venture has annual capacity to make 160,000 trucks and 10,000 buses.

Last year China’s central government lifted its 50% cap on foreign ownership for companies that make electric vehicles. The government will ease the limit for commercial vehicle venture in 2020 and for passenger cars in 2022.

A year ago BMW AG announced it will spend $4.2 billion to gain a 75% stake in its carmaking venture with Brilliance China Automotive Holdings Ltd. At the same time, Volkswagen AG was granted the right to buy controlling interest in its Chinese joint ventures.