Hyundai Motor signed an agreement Thursday with a Chinese company to build a 3-billion-yuan (US$451 million) auto joint venture in southwest China's Sichuan province.

Hyundai and its local partner Sichuan Nanjun Automotive Group said they will each invest 1.5 billion yuan into the commercial vehicles production base in Ziyang city.

The joint venture will also churn out electric and gas-powered vehicles to cash in on business opportunities in the world's largest auto market.

Its annual production is expected to reach 200,000 units by 2013 and 700,000 units by 2020.

Hyundai Motor of the Republic of Korea is the world's fifth-largest auto company and has car plants in countries including the United States, China and Russia.