Kia Motors announced today that it has signed a Memorandum of Understanding (MoU) with Dongfeng Yueda Kia for the construction of its third Chinese plant at Yancheng in the Jiangsu Province.
The new factory, which will have an annual capacity of 300,000 units and is expected to be operational in the second half of 2014, will boost Kia’s annual local production to 730,000 units in order to satisfy the dramatically increasing demand for its vehicles.
The new factory will build models developed for the local market, though no further information was provided.
Hyundai Motor Group Chairman, Mong-Koo Chung, said: “Kia is one of the fastest growing automotive companies in the Chinese market. That would not be possible without the continuous support and cooperation from the governments and citizens of Jiangsu and Yancheng.”
Kia has increased its market share in China over the past few years, from 2.0% in 2007 to 3.0% in 2010. Moreover, this year’s results are even better: until the end of September, its market share increased to 3.5%, which elevated it to the top-10 automakers in the world’s largest car market.
Combined with “parent” company Hyundai, which has an annual capacity of 720,000 units, the Hyundai Motor Group aims to deliver 1,150,000 units this year in China, ranking third overall behind VW and GM.
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