South Korean automaker Hyundai Motors Corp is set to enter China's commercial vehicle market after inking an agreement with Sichuan's Nanjun Automobile Co on April 29.

According to the Sichuan provincial government's official website, the two companies will form Sichuan Hyundai Automobile Co in the city of Ziyang, which already has an industrial chain making trucks, diesel engines, tires and components.

Each side will hold a 50 percent share in the joint venture, which will require an investment of 3.6 billion yuan in its first phase to build a facility with the capacity to make 200,000 vehicles annually by 2013.

Long-range plans call for production of 700,000 vehicles by 2020.