Kia's 3rd plant aims to boost production
By Jin Jing |
November 3, 2011, Thursday
|
Print Edition
Print Edition
HYUNDAI'S Kia Motors Corp yesterday said its Chinese joint venture will build a third plant in China to boost its production and to make cars developed especially for the domestic market.
Located in Yancheng, east China's Jiangsu Province, the new plant will have a designed annual capacity to make 300,000 vehicles when it is completed in the second half of 2014, according to Kia's statement yesterday. The new plant will boost Kia's total production in China to 730,000 units a year.
Kia said the plant will produce "strategic models developed especially for the Chinese market."
Zhang Xin, an auto analyst at Guotai Jun'an Securities Co, said: "The construction of the third plant will help Kia keep up with the growing market demand in China."
But he said Kia needs to find "the right models to ensure market competitiveness and maintain profitability."
Kia, an affiliate of Hyundai Motor, makes cars in China in a tie-up with Dongfeng Motor Group Co and Jiangsu Yueda Investment Co.
Hyundai Motor also plans to start output at its third China plant next year, bringing its total annual capacity to 1 million units.
Kia expects to sell 430,000 domestically-produced vehicles in China by the end of this year, the statement said.
Last year, Kia increased sales by 38 percent year on year to 333,028 units in China. In the first 10 months of this year, it delivered a record 341,682 units.
Kia is the latest carmaker to unveil plans to boost output despite overcapacity risks and slower demand overall in China's auto market.
After surging 32 percent last year, vehicle sales in China may grow below 5 percent this year, the China Association of Automobile Manufacturers predicted earlier.
Located in Yancheng, east China's Jiangsu Province, the new plant will have a designed annual capacity to make 300,000 vehicles when it is completed in the second half of 2014, according to Kia's statement yesterday. The new plant will boost Kia's total production in China to 730,000 units a year.
Kia said the plant will produce "strategic models developed especially for the Chinese market."
Zhang Xin, an auto analyst at Guotai Jun'an Securities Co, said: "The construction of the third plant will help Kia keep up with the growing market demand in China."
But he said Kia needs to find "the right models to ensure market competitiveness and maintain profitability."
Kia, an affiliate of Hyundai Motor, makes cars in China in a tie-up with Dongfeng Motor Group Co and Jiangsu Yueda Investment Co.
Hyundai Motor also plans to start output at its third China plant next year, bringing its total annual capacity to 1 million units.
Kia expects to sell 430,000 domestically-produced vehicles in China by the end of this year, the statement said.
Last year, Kia increased sales by 38 percent year on year to 333,028 units in China. In the first 10 months of this year, it delivered a record 341,682 units.
Kia is the latest carmaker to unveil plans to boost output despite overcapacity risks and slower demand overall in China's auto market.
After surging 32 percent last year, vehicle sales in China may grow below 5 percent this year, the China Association of Automobile Manufacturers predicted earlier.
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