Hyundai Motor, CICC to cooperate on commercial vehicles in China

Hyundai Motor is aiming to regain ground in China with its hydrogen-powered commercial vehicles.

Hyundai Motor's hydrogen fuel-cell systems plant in Guangzhou, China. [YONHAP]

Hyundai Motor is aiming to regain ground in China with its hydrogen-powered commercial vehicles.

The Korean automaker on Tuesday signed a memorandum of understanding (MOU) with China International Capital Corporation (CICC) to cooperate on the automaker's commercial vehicle business in China.

Hyundai aims to sell its eco-friendly commercial cars to Chinese government agencies and companies. Hyundai will develop and manufacture hydrogen commercial vehicles at its Sichuan plant, while CICC will help the automaker find customers.

The latest agreement comes as China is pushing for a rapid shift to electrification in commercial vehicles. China has the world's largest commercial vehicle market, and the government announced earlier that it aims to provide 1 million hydrogen-powered vehicles by the end of 2035.

Hyundai Motor plans to release an electric truck equipped with its hydrogen fuel-cell system as early as next year.

Hyundai Motor recently built its first overseas hydrogen fuel-cell systems plant in Guangzhou, China, with an initial production capacity of 6,500 fuel-cell system units per year.

Hyundai aims to have an annual production capacity of 500,000 hydrogen vehicles by 2030.

BY SARAH CHEA [chea.sarah@joongang.co.kr]