Hyundai Motor Group (HMG), which incorporates Hyundai and Kia brands, is injecting manpower and resources to boost its commercial vehicle (CV) wing for the low-volume, high-margin truck and bus sector.
The carmaker is also bolstering its CV business with focus on regions for product development, global design center and output hub in South Korea.
Frost & Sullivan's Executive Outlook of Hyundai's Global Commercial Vehicle Market Activities has revealed that HMG's CV market share is capable of growing from 2.5% in 2014 to 4.1% by 2022.
It has been observed that boosting South Korean Won beyond 1150 to 1100 per US dollar is likely to affect market development.
Frost & Sullivan automotive & transportation senior research analyst Silpa Paul said: "With a largely untouched overseas market, the company's CV shipments will more than double over the 2014-2022 time period.
"Across geographies, the medium-duty and heavy-duty (HD) series of Hyundai Mighty, Hyundai HD series and Hyundai Xcient, will receive maximum technological focus in order to increase the powertrain range, improve fuel efficiency, and add connectivity-linked safety and convenience features at competitive prices.
"Although HMG is a relatively unknown force in the CV market, strong brand value, combined with design and feature-addition marketing strategies will catalyze HMG's growth in the global CV market"
From 2014 to 2022, only 18% of HMG's CV incremental annual sales is expected to be registered from Europe and North America, while 76% is likely to be reflected in China, the Association of Southeast Asian Nations, the Middle East and South America.
