Hyundai inks deal to produce commercial vehicles in Europe

SEOUL, June 28 (Yonhap) -- South Korea's leading automaker Hyundai Motor Co. said Tuesday that it has signed a deal with a Turkish company to produce light vans, buses and trucks for the European market.
The complete knockdown production agreement reached in Istanbul calls for Hyundai to send completed vehicle parts and components to Turkey's Karsan Co. with production slated to begin in 2014.
In the first year, Hyundai is aiming to produce 6,000 vehicles with production to go up to 18,000 in the following year and 26,000 by 2016.
The cars to be assembled in Turkey will be of a brand new design and have a semi-bonnet that is popular in Europe, Hyundai said. Of the 1.05 million commercial semi-bonnet vehicles sold worldwide last year, 46 percent or 490,000 units were sold in Europe.
The South Korean carmaker said the commercial vehicle will be larger than the 12-seat Starex van, but smaller than the 25-seat County bus.
"A single type of vehicle frame will be used to make all the cargo-carrying vans, buses and trucks to be assembled at the Karsan plant," a company spokesperson said. He said the vehicles will all carry the Hyundai logo.
Established in 1966, Karsan has experience in making Hyundai vehicles since it already assembles Mighty mid-size trucks for the regional market.
The carmaker, meanwhile, said it wants to increase its commercial vehicle production to 300,000 units by 2015 from an estimated 82,000 forecast for this year. If the target can be reached, Hyundai will become one of the five largest producer of buses, vans and trucks in the world.
At present, the global market is dominated by three Chinese truck companies including Dongfeng Motor Group Co., Germany's Daimler and Tata Motors of India.
Hyundai said it hopes to sidestep Tata while staying ahead of companies such as Sweden's Volvo and Iveco that makes cars in Italy.
yonngong@yna.co.kr