SEOUL -- Hyundai Motor will increase production capacity 50% at a domestic commercial-vehicle factory, enhancing competitiveness in a market segment the South Korean automaker was relatively slow to enter.
The facility in Jeonju, Jeolla Province, can now turn out 65,000 vehicles a year. Hyundai will boost capacity to an annual 100,000 units by 2020 for a projected total of 400 billion won ($367 million). This will strengthen its ability to produce such commercial vehicles as trucks and buses.
Hyundai will also work to develop high-end products for markets it has not adequately cultivated until now, such as Western Europe and North America. It decided to make the large-scale domestic investment in anticipation of global commercial-vehicle demand rising 27% to 3.96 million units a year by 2020.