Hyundai's Diversification Won't Be Straightforward

South Korea's Hyundai Motor has signed a deal with Turkish light commercial vehicle (CV) maker Karsan to jointly produce CVs in the country. Hyundia is planning to step up its presence in the global CV sector and is targeting annual sales of 300,000 units by 2015, compared with 177,134 units last year. Given that Hyundai mostly specialises in the production and sales of small and entry-level cars, we view its diversification into CVs positively. However, it is unlikely to bag significant gains in view of the strong presence of established brands in the European CV sector.

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