Hyundai Glovis Co., a logistics unit of Hyundai Motor Group, said Thursday it has set up two joint ventures (JVs) in China to advance into the local secondhand car and shipping markets.
Hyundai Glovis and Beijing Changjiu Logistics Co. have formed two separate joint ventures -- Beijing Changjiu Glovis Automobile Service Co. and Shanghai Changjiu Glovis Shipping Co. -- with an aim to begin their operations early next year, the company said in a statement.
Hyundai Glovis didn't provide details about the joint ventures such as each company's stake ownership and investment size.
"We are targeting to sell around 100,000 secondhand vehicles for five years from 2020 to 2024 using Changjiu's 75 sales networks across China," a company spokesman said.
China's secondhand car market has much room to grow. New car registrations reached 28.08 million units in China last year, but used car sales stood at 13.82 million units valued at 133 trillion won (US$113 billion), the statement said.
"China's secondhand car market is expected to grow an average of 15 percent annually by 2023 to exceed the new car market in terms of sales numbers," he said.
Shanghai Changjiu Glovis Shipping will focus on delivering completed vehicles in Southeast Asian markets using Hyundai Glovis' 60 pure car and truck carriers (PCTCs) and Changjiu's six vessels, the statement said.
As the Chinese government lifted a ban on exports of used cars in 10 major cities such as Beijing and Shanghai to boost the economy, the joint shipping company expects to win more used car delivery deals.