Korean automaker Hyundai has established itself as one of the leading players in passenger vehicle market in India. Now, Hyundai may be planning to enter the commercial vehicle segment in the country.
According to sources, Hyundai has already begun exploratory activities for entering the commercial vehicle sector in India. The Indian CV market is on Hyundai's priority list to begin its new venture in the country.
Hyundai commercial vehicles are sold in over 130 countries across the globe. The company may enter the Indian CV market with trucks and it will be followed by buses.
Although it is not clear when will Hyundai bring its commercial vehicles to India. Currently, Hyundai sells over 1,00,000 commercial vehicles per year.
It is said that Hyundai wants to enter the Indian CV market to raise its sales volume and build its global ranking in the commercial vehicle market. The success of Hyundai's passenger vehicles in India may help in this cause.
Hyundai entered into the commercial vehicle business in 1978 with buses. The company began producing trucks in 1984. The CV wing has three manufacturing plants in Korea, Turkey and China.
With the addition of Indian market to its commercial vehicle department, the sales volume could boost on a long term basis. On the other hand, Indian CV sector has recorded a significant growth in the period of April to October 2016.
The Indian medium and heavy CV segment is dominated by Tata Motors and Ashok Leyland. Tata Motors accounts for 55 percent of market share and Ashok Leyland has a market share of 30.6 percent in the country.