[Courtesy of Hyundai]
South Korea's Hyundai Motor forged a deal with Indonesia's Artha Graha (AG) Group to set up a joint venture in Jakarta that would assemble trucks and other commercial vehicles targeting Southeast Asia.
Under the deal, signed Tuesday at the Indonesian embassy in Seoul, Hyundai will provide engines and other key parts for the complete knock-down (CKD) factory capable of producing about 2,000 vehicles a year. Terms have yet to be fixed, but the joint venture will be formally established in May next year.
Hyundai said the joint venture is in charges of sales, production and after service in the Indonesian commercial vehicle market dominated by Japanese companies. Production will begin in the second half of next year, starting with Xcient and New Mighty trucks.
Hyundai plans to use the joint venture as its base for commercial vehicle sales in Southeast Asia. Hyundai predicts demand for commercial vehicles will rise gradually in Indonesia and other ASEAN members.
reporter
Lim Chang-won
cwlim34@ajunews.com
