Hyundai plans to enter the light commercial vehicles market in India, for which it is in talks with a local firm.
The company, which has a slew of LCVs in Korea ranging between 2.5 tonnes and 7 tonnes, has been studying the feasibility for entering the segment, specially the below one tonne domain dominated by Tata Motors' "Ace".
"Officials from our parent company did have talks with an Indian firm. We are working for some corporation with a local company for development of commercial vehicles," Hyundai Motor India Managing Director and CEO HS Lheem told PTI.
He, however, declined to name the Indian company with which Hyundai was holding talks.
In the past, Hyundai had been linked with Eicher Motors but both the companies have vehemently denied the reports.
Lheem said the company saw a lot of potential in the sub-one tonne segment, which has become synonymous with last mile transportation in the commercial vehicles segment, but competing with Tata Motors would be a tough task.
"We did a detailed study for the one tonne segment...but can't compete with 'Ace'. If we have to compete, then we have to build the product in India," he said.
Following Tata's footsteps, other companies like Bajaj Auto and Mahindra & Mahindra are also developing their respective products in the segment, while three-wheeler major Piaggio has already introduced "Ape Truk" to take on "Ace".
Ashok Leyland has announced a tie-up with Nissan for developing and manufacturing LCVs in India.