Dongfeng Kia will open a third plant in China
- Dongfeng Motor is a Chinese group that has its own brand (Dongfeng) as well as subsidiaries in Joint Venture (JV) with foreign brands: Japanese (Nissan and Honda), French (Peugeot and Citroen) and Korean (Kia) brands. The vehicles produced by the JV are sometimes labeled by analysts as Dongfeng Motor vehicles and sometimes as Renault-Nissan, Honda, Hyundai-Kia and PSA vehicles.
- As its production capacity became insufficient in view of the its sales growth in the Chinese market, the JV Dongfeng-Kia will open its third assembly plant in February 2014, a few months ahead of schedule. The third plant will be located in the same city as the other two existing plants: Yancheng (Jiangsu Province, East China, not so far from Shanghai).
- The new plant (300,000 vehicles per year) will bring the capacity of the Dongfeng Kia joint venture in China from 430 000 vehicles per year at present to 730,000 units, corresponding to the volume of sales that the manufacturer intends to achieve in 2015.
- Dongfeng Kia, which offers a dozen models on the Chinese market, sold 480,000 vehicles in 2012, out of which 432,000 were produced in Yangcheng. In the first quarter of 2013, sales totaled 137,567 vehicles, up 25.6% compared to the first quarter of 2012.
- At this rate, Dongfeng Kia could sell between 550,000 and 600,000 vehicles in China in 2013, while the current production capacity does not exceed 430,000 vehicles per year. In order to be in position to meet the demand, Dongfeng Kia has taken the decision to accelerate the opening of its third plant in Yancheng and will start it as as soon as February 2014.
Data source: File #104 - Worldwide Production data detailed by make from 2005 to 2012
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