The development of Korean cars in the Chinese market in recent years has not been smooth, for many reasons. There is both the rise of Chinese brands and the misjudgment of Kia's Chinese market strategy. There are also differences between China and South Korea on issues such as THAAD. Therefore, Kia Motors, which is gradually in trouble in China, is restructuring its management structure and trying to make another leap forward. In addition, starting with the EV6, Kia plans to build a lineup of six exclusive electric vehicles by 2027.
Kia announced on the 7th that it has signed an investment expansion agreement with Yancheng, Jiangsu Province, China, through which Kia plans to strengthen its lineup of environmentally friendly automobile products, expand exports and increase investment in China with the support of Yancheng.
So far, Kia's corporate name in China is "Dongfeng Yueda Kia". As a joint venture established by Kia when it entered China in 2002, Kia 50%, Dongfeng Motor 25%, and Jiangsu Yueda Group 25% of the tripartite system. Recently, Jiangsu Yueda Group, a state-owned enterprise in Yancheng City, joined the shareholder Fengche and established a new joint venture under the bilateral system.
Note: Kia EV6
Kia said, "Simplified shareholding structures make it possible to make decisions quickly and efficiently. We are also considering expanding equity investments to lead the Chinese business. Kia plans to unveil the new name and new corporate image (CI) of the joint venture at the Beijing Auto Show in April.
Photo note: (front row from left) Liu Changsheng, head of Kia China, and Wang Shendong, head of Yancheng Development Zone, took a group photo at the signing ceremony of the Kia-Yancheng Investment and Expansion Agreement
Kia's highlight in the Chinese market came in 2016, when it sold 650,000 vehicles in the whole year, halved to 360,000 in 2017 and sold only 127,000 last year.
Kia plans to make this year the first year of its rebound in China. To this end, the new cars launched this year will apply a large number of safety and new technology specifications to enhance marketability, and reorganize the main sales models into global strategic models such as carnivals and sporting events. In addition, starting from next year's EV6, it plans to launch a new electric model in the Chinese market every year, and create a lineup of six exclusive electric models by 2027.
Kia also plans to significantly enhance the brand image, such as significantly improving the appearance of the 4S store. In order to increase brand exposure by expanding dealer-centric advertising and marketing, more Chinese consumers can experience products and brands.