Hyundai said to wholly own Sichuan-based CV joint venture

Shanghai (Gasgoo)- Sichuan Hyundai Motor Co., Ltd (Sichuan Hyundai), a joint venture between China's Sichuan Nanjun Automobile Group (CNJ Automobile) and South Korea's Hyundai Motor, will reportedly be entirely controlled by the Korean shareholder, according to a local media outlet.

Hyundai Motor will acquire the stake possessed by the Chinese equity holder CNJ Automobile, and the equity acquisition is said to be completed next year, the local report revealed, citing a source with direct knowledge.

(Photo source: Sichuan Hyundai)

If the news was officially confirmed, Sichuan Hyundai will become China's first company exclusively owned by a foreign investor after the cap on foreign ownership in CV enterprises was removed in this country.

China's authority intends to further open up the world's largest auto market by gradually scrapping the limit on foreign ownership of automotive ventures.

The significant move will proceed step by step within a five-year grace period. To be specific, China would remove foreign ownership caps for companies making special vehicles, fully electric and plug-in hybrid vehicles in 2018, for makers of commercial vehicles in 2020, and the wider car market by 2022, the National Development and Reform Commission mentioned on April 17.

Founded in August, 2012, Sichuan Hyundai was initially 50-50 invested by CNJ Automobile and Hyundai Motor, according to TianYancha, a Chinese company information search platform. Staring operation in January 2013, the joint venture primarily works on the production, sale and R&D of commercial vehicles, engine and relevant auto parts and currently has two manufacturing bases in Sichuan Province.