The south- Korean carmaker Kia Motors announced that its third vehicle production unit in China will be built until 2014, manufacturing “strategic models developed especially for the Chinese market.”
Counting the 300, 000 units/year production of the new plant, Kia’s total output in China will reach 730,000 vehicles and will cover the high increase in local demand.
Kia, an affiliate of Hyundai Motors , has a 50-50 joint ventures in China with local Dongfeng Motor Group Co Ltd, through which Kia Motors produces, sells and services cars in China. The companies expect China sales to reach 1.15 million vehicles this year, outpaced only by Volkswagen and General Motors.
Hyundai Motor also intends to bring its China annual capacity to 1 million units, after it will begin operating its third factory in 2012.
Kia registered an increasing share on China market – from 2.0% in 2007 (counting as the18th in the industry) to 3.0% in 2010 (13th in the industry) and to 3.5% in the first 9 months of 2011 (counted as a top-10 auto maker).