On Sunday, Hyundai Motors Co. announced that it has agreed to launch a truck manufacturing venture in China, worth a whopping $400 Million, in association with a local partner, as the company seeks to expand into an automobiles market which was recently designated as the worlds largest.

South Korea's largest maker of automobiles, Hyundai, confirmed that it assigned an initial agreement with Baotou Bei Ben Heavy-Duty Truck Co, China's commercial vehicles manufacturer, and a target of selling at least 100,000 vehicles across the country by 2014 has been set.

"The joint venture will initially launch a refreshed Baotou Bei Ben model and then launch a brand new model by 2012 with input from Hyundai's modern technology and equipment, gaining competitiveness in the Chinese commercial vehicle market. Entering China's commercial vehicle market is essential in establishing Hyundai's reputation as the most comprehensive car manufacturer in the world's largest auto market", said Hyundai in an official statement announcing the signing of the deal.

The deal was signed in Seoul on Saturday, and entitles both the firms involved to hold a 50% stake each. The joint venture manufacturing units will takeover the current largest truck business in China which has the capacity to manufacture 40,000 vehicles per year.