Hyundai Readies Global Push in Commercial Vehicles

Hyundai Motor Co. says it is launching a $1.8 billion effort to bolster its commercial vehicle business that will include first-time models for North America and Europe.

The company predicts 30% annual growth in global demand for commercial vehicles to the end of this decade. Its current share of that market in Asia outside China is about 2%, Reuters reports.

Hyundai began making heavy-duty trucks in China last year. Next month it plans to begin assembling its H350 light commercial vehicle series in Turkey for the European market. The company also says it will hike output at its commercial truck plant in South Korea to 100,000 units by 2020 from 65,000 currently.

On Monday the company announced its truck strategy. It says it will develop and introduce "premium" commercial vehicle models in Europe and North America at an unspecified time.

Analysts tell Reuters it could take years for Hyundai to establish itself in either market, where it would face large and well-entrenched rivals.