Shanghai (ZXZC)- South Korean automaker Hyundai has obtained 100% stake in Sichuan Hyundai Motor Co., Ltd, according to the corporate data platform Tianyancha, making the latter the first commercial vehicle (CV) manufacturer in China that is wholly owned by a foreigner company.

Founded in 2012, Sichuan Hyundai was a 50/50 joint venture between Hyundai and Sichuan Nanjun Automobile Group Co., Ltd (CNJ Automobile), a Sichuan-based CV maker, involving a registered capital of RMB3.7 billion. Starting operation in Jan. 2013, the joint venture is dedicated to producing and selling CVs and CV-used engines & auto parts, and also works on relevant R&D business, according to Tianyancha.

(Photo source: Sichuan Hyundai)

The move about Hyundai acquiring the rest 50% stake possessed by CNJ Automotive was exposed as early as last September. The choice of being wholly acquired by the foreign shareholder might be done to rescue Sichuan Hyundai from its poor sales performance. As local reports said, the joint venture saw its auto sales in 2016 jump 33.7% year on year to 39,600 units, while the volume kept sliding afterwards, forcing the automaker to lower its sales goal to 30,000 units in 2018. Besides, the confirmed move will set an example as a solution to those who are vexed by similar problem.

China decides to entirely end foreign ownership caps on local auto companies by 2022. The National Development and Reform Commission announced in a statement in April 2018 that the country would remove limits on companies making full electric and plug-in hybrid vehicles in 2018, commercial-vehicle companies in 2020 and the wider passenger vehicle market by 2022.

From the time being, the policy has been implemented as planned. Prior to the case of Sichuan Hyundai, Tesla's Shanghai-based Gigafactory 3, China's first NEV manufacturing plant wholly controlled by a foreign enterprise, has started operation at the end of 2019.