Recently, according to media reports, Dongfeng listed the transfer of 25% equity of Dongfeng Yueda Kia project has been delisted, and the transfer price is 297 million yuan. This means that Dongfeng Group officially withdrew from Dongfeng Yueda Kia.
According to Kia, after Dongfeng Group's withdrawal from, the company's future share ratio is still under negotiation with Yueda, and the results are expected to be announced in April next year. At this point, Dongfeng Yueda Kia (DYK) will change from a tripartite joint venture to a two-party shareholding of Yueda and Kia.
According to public information, Dongfeng Yueda Kia Automobile Co., Ltd. is a tripartite joint venture company jointly established by Jiangsu Yueda Investment Co., Ltd. and South Korea's Kia Automatic Vehicle Co., Ltd., with a shareholding ratio of 25%, 25% and 50% respectively, and the joint venture business period is from September 12, 1992 to September 11, 2022.
That is to say, with the transfer of 25% of the shares of Dongfeng Yueda Kia held by Dongfeng Motor, then Dongfeng Motor will also completely withdraw from Dongfeng Yueda Kia, and kia's domestic models will no longer see the word "Dongfeng".
In fact, Dongfeng Yueda Kia was once a dark horse in the Chinese car market. Before 2017, Dongfeng Yueda Kia developed very rapidly, reaching a peak of 650,000 vehicles per year in 2016.
However, after entering 2017, Dongfeng Yueda Kia's sales began to take a sharp turn, with sales of only 359,500 units in 2017 and sales continuing to decline from 2018 to 2020, with 370,000 units, 289,800 units and 249,300 units, respectively.
Entering 2021, the sales situation of Dongfeng Yueda Kia also did not improve, and the sales volume of Dongfeng Yueda Kia from January to November was only 137,900 units.
The long-term downturn in market performance will inevitably drag down the overall financial situation of Dongfeng Yueda Kia. According to the listing information, in 2020, Dongfeng Yueda Kia lost 4.75 billion yuan, and in the first 10 months of this year, Dongfeng Yueda Kia lost 2.612 billion yuan.
At present, in addition to Dongfeng Yueda Kia, there is also Beijing Hyundai, but the current development of Beijing Hyundai is also not optimistic.
According to the China Automobile Association, the market share of Korean cars in the Chinese market in 2016 was 7.35%, fell to 4.63% in 2017, and has dropped sharply to 3.8% in 2020, while only 2.5% remained in the first three quarters of this year, setting a record low in the past six years.
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