Hyundai Motor said on Dec. 12 that it will set up a joint venture with an Indonesian company to help assemble commercial vehicles.
The JV, to be set up between Hyundai and Artha Graha in May, will be in charge of putting together the knockdown units of the Xcient heavy-duty and New Mighty trucks and sell the complete vehicles in the Indonesian market, the company said in a statement.
The size of the investment has yet to be decided, a company spokesman said.
The JV will produce 2,000 Xicent and New Mighty trucks annually from late next year, with a plan to gradually add new models to woo Indonesian customers, it said.
Hyundai said it aims to export commercial vehicles assembled in Indonesia to neighboring Southeast Asian countries, as they do not impose import tariffs on products from Indonesia due to their bilateral trade agreements.
By Alex Lee and newswires (email@example.com