Hyundai Motor will build a commercial vehicle production base in Algeria, an African country that is garnering much attention as a newly emerging economy. The production facility is expected to strengthen the Korean automaker’s position in the local market by enabling it to offer a one-stop service from production to sales and after-sale services.
Hyundai Motor signed a contract to establish a joint venture with Global Group, a local company, during the Korea-Algeria Business Forum held at El Aurassi Hotel in Algeria on Dec. 17.
The production subsidiary, to be established in the Algerian industrial city of Batna, will assemble vehicles with completely knocked-down (CKD) kits provided by Hyundai Motor. The two companies plan to grow the new joint venture company into a leading commercial vehicle company in Algeria. Its operation will kick off in 2020.
The company plans to gradually ramp up its production volume by starting from 6,500 units. Its models will include mid-sized and large trucks including the Mighty and the Xient and buses including the Solati and the County. Engines and other core parts will be produced at factories in Korea and be supplied to the joint venture’s assembly factory in Algeria. Shipments of CKD kits from Korea will increase as the local assembly lines in Algeria raises their utilization rates.