Hyundai's Santa Cruz crossover truck _ Reuters

After a fairly successful run in Indian passenger car market, South Korean auto maker Hyundai has set its sights on the commercial vehicle segment. Many global players have already set up factories in India to cater to the growing domestic commercial vehicle market and for exports.

Hyundai Motors India Managing Director Y.K. Koo has said that the parent company is carrying out a feasibility study of the market, but clarified that the car unit was not involved in it, reports Business Standard.

A Hyundai team from South Korea recently visited India to conduct a feasibility study for commercial vehicles, meet possible partners and evaluate export prospects, the daily added.

Hyundai sells around 300,000 units of commercial vehicles a year and has a good presence in South Korea and China. It also exports to several countries.

As per FY 2017 data, 727,000 units of commercial vehicles were sold in the Indian market and the dominant player Tata Motors’ stranglehold is loosening. Its market share now stands at 42.1%, down from 60.9% in FY 2009.

Issues like the recently introduced Goods and Services Tax and proposed regulations pertaining to emission norms, mandatory use of speed governors and air-conditioned cabins in trucks are expected to impact the industry.

European commercial vehicle majors such as Daimler AG and Volvo AB have established bases in India and  are using it as a hub to cater to south-east Asia market. India’s exports of medium and heavy-duty trucks rose 25% in FY17 to 43,719 units.

Asia Times Financial is now live. Linking accurate news, insightful analysis and local knowledge with the ATF China Bond 50 Index, the world's first benchmark cross sector Chinese Bond Indices. Read ATF now.