Recently, Dongfeng Yueda Kia Automobile Co., Ltd. (hereinafter referred to as Company) has officially changed its name to Kia Automobile Co., Ltd., a joint venture car company with a history of 30 years, and had no choice but to change its name. With a loss of nearly 10 billion yuan in 4 years, the arrogant Korean car finally swallowed the bitter fruit of self-brewing.
was founded on September 12, 1992, the initial joint venture parties are Yueda and Qiy Kia, the joint venture ratio is 50 to 50, in 2002, Dongfeng Motor joined, the equity is finally positioned Dongfeng, Yueda each hold 25%, Kia holds 50%. After the three-party joint venture, in fact, it has also experienced a period of honeymoon period, but the good times are not long, with the decline in sales and serious losses, in 2021, Dongfeng Motor withdrew from Dongfeng Yueda Kia, leaving only Yueda and Kia joint ventures, this year, Yueda Company gave up the capital increase of Company.
In 2016, Dongfeng Yueda Kia's annual sales were 650,000 vehicles, a record high. But then sales began to decline, and in 2021, Dongfeng Yueda Kia's sales were only 152,500 units, which was 500,000 units less than in 2014, which was the highest sales volume. Not only sales plummeted, Dongfeng Yueda Kia's loss is also very serious, from 2017 to 2021, IN FOUR AND A HALF YEARS, Company accumulated a loss of 9.035 billion yuan, making Dongfeng Motor overwhelmed and withdrawn from the market.
Some people say that it is because of THAAD, but THAAD is just the fuse, even without THAAD, the decline of Korean cars is inevitable, but the decline of time may slow down a little.
The reason why Korean cars are "out of favor" in the Chinese market, the most fundamental reason is that the cost-effective brand has not been moved, Korean cars have entered the Chinese market, the initial introduction of entry-level models, relying on lower prices than the German and Japanese systems, excellent stability, eye-catching shape design, or can achieve good sales, because at that time the domestic cars were not yet a climate, the german and Japanese product prices were high, and the Korean cars could find living space between the cracks. However, the cost-effective brand can not play for a lifetime, especially with the rise of domestic cars, the cost-effective advantage of Korean cars that once most impressed consumers is gone, even if it is low price, it cannot be exchanged for the amount of the past. The German and Japanese models are also constantly reducing prices to survive, resulting in the continuous compression of the production space of Korean cars, resulting in the decline of Korean cars becoming inevitable.
In fact, Korean cars still have a lot of high-end products overseas, and Korean cars do not lack technology, whether it is engines, gearboxes, or new energy, Hyundai cars have a lot of eye-catching technology. However, whether it is out of the neglect of the Chinese automobile market or the decision-making mistakes of the management, these high-end models and advanced technologies have not been introduced to the country, and now Dongfeng Yueda Kia has taken the self-help way of reshaping the high-end road of rebranding in the face of the plunge in sales, gradually abandoning the model market below 100,000 yuan and moving closer to the high-end brand, but it is too late, because the low-end cheap image of Korean cars has been formed, and it is very difficult to reverse it.
The biggest crisis of Korean cars is that the top management of Hyundai Motors may have realized the problem, but it cannot be reversed, and it is impossible to save Korean cars by launching several high-end models alone, and can only watch Korean cars slide into the abyss step by step. Especially with the rise of Chinese brand hybrid models, the defeat of Korean cars has been decided, and it has entered the countdown to exit the Chinese market.