Kia Motors has announced that it plans to
build a third manufacturing plant in China in order to meet dramatically
increasing local demand and to maintain its positive sales momentum in the
Chinese market.
The signing ceremony for the investment MOU
(Memorandum of Understanding) to build the new Dongfeng Yueda Kia Plant 3 in
Yancheng, Jiangsu Province was attended by more than 50 Chinese government
officials and Kia Motors representatives, including Hyundai Motor Group
Chairman, Mong-Koo Chung. Dongfeng Yueda Kia (DYK) Motors is a 50/50 joint
venture through which Kia Motors manufactures, markets and services vehicles in
China.
![]() |
Dongfeng Yueda Kia Plant One |
The new plant will be located just five kilometers from Kia’s second plant in Yancheng’s Economic and Technology Development Zone. Upon completion of the plant, which will be able to produce 300,000 units annually, Kia will have increased its production capacity in China from the current 430,000 units at its existing two plants to a total of 730,000 units per year.
Mr. Chung said, “With our third China
plant, which we will begin constructing at the end of next year, Kia will be
well-positioned to provide its growing Chinese customer base with stylish,
safe, reliable and high-quality vehicles while also helping to further develop
the local economy and improve people’s lifestyles”.
Kia plans to begin construction of the new
plant at the end of next year and anticipates completion of the facility and
the roll-out of production models in the second half of 2014.
Strategic models developed especially for
the Chinese market to reflect local needs and preferences will be built at the
new plant, but the specific models have yet to be finalized as Kia continues to
study the rapidly transforming Chinese automobile market.
![]() |
Dongfeng Yueda Kia Plant Two |
Kia has been one of the best performing
foreign brands in China in recent years.
Sales of locally-manufactured Kia vehicles reached 101,427 units in
2007, and the company posted a 40% year-on-year increase in 2008, selling 142,008
units after the second DYK plant was put into full operation. Kia continued its
strong growth in 2009, recording a 70% year-on-year increase (241,386 units
sold). Last year, Kia posted further
strong double-digit growth, reaching 333,028 vehicles sold for 38% year-on-year
growth.
So far this year (through the end of
October), sales of locally produced vehicles recorded 341,682 units thanks to
the introduction of the highly competitive mid-size K5 sedan (known as ‘Optima’
in other markets) and the sub-compact K2 (a localised version of the all-new
Rio).
Combined with its
sister company Hyundai Motor Co., which has annual capacity in China of 720,000
units, the Group expects to reach sales of around 1,150,000 units in 2011,
placing it third in the Chinese market behind VW and GM.
No comments:
Post a Comment