In the new era of joint venture, Kia has set a new flag in China

After hitting the reset button in China at the end of 2021, Kia is starting a new chapter of development.On the first working day after the Spring Festival, Kia announced that it signed an investment expansion agreement with yancheng Municipal Government and Yueda Group, and planned to establish a new joint venture with Yueda, opening a new era of joint venture.Under the agreement, the new joint venture plans to increase its capital by $900 million and increase vehicle sales and capacity utilization by expanding investment, introducing new models, developing new energy vehicles and setting up export bases.At the same time, yancheng municipal government will fully support Kia to expand sales in The Chinese market, and provide support for kia yancheng factory’s export trade, and help kia’s development in China.Kia did not disclose the shareholding ratio of the new joint venture and how it will be funded.Kia insiders told Buycar that the details of the new joint venture, including its name, are planned to be announced in April, but some issues still need to be approved by national authorities.In fact, as early as dongfeng withdrew from the three-way joint venture with Kia and Yueda, the industry generally believed that this was a three-way win-win situation.Kia, which has started its brand renewal after experiencing a bad situation in the Chinese market, is also in urgent need of reform in China, the world’s largest auto market, to restore its status as a mainstream joint venture brand.Now, in the year of Nonyin, kia has begun to make progress in the market, marking the 20th anniversary of its entry into China.In April 2021, Kia launched a new LOGO and new concept in the Chinese market, bringing a new image, new experience and new products to accelerate the transformation to electrification, kicking off the prelude to brand remodeling, and achieved good market feedback through the launch of smart Racing Ace, fourth-generation Jia Hua and other hit products.Driven by the fourth-generation Jia Hua, Smartrope Ace and K5 models, sales of models with a guide price of more than 140,000 yuan have risen from 11% to 64%, according to official data.By the end of 2021, Kia’s average MSRP was 141,300 yuan, up 32,900 yuan from 108,400 yuan in the same period of 2019.The introduction of products and the support of intelligent technology have laid a solid foundation for Kia to move up.Kia is also committed to promoting the introduction of global strategic models and new energy vehicles in the face of the new competitive landscape of the gradual popularization of intelligent technology in China’s automobile market and the booming new energy market.According to the plan, the new models on the market this year will be equipped with a large number of safety configuration and new technology configuration, to further improve product performance and market competitiveness, and with Jia Hua, Smart racing Ace and other models on sale, improve kia’s global strategic model lineup.In the field of new energy, starting from 2023 to 2027, Kia will launch new electric models in the Chinese market every year, gradually building a new EV matrix of six electric vehicles.In addition, to help achieve China’s dual carbon goal, Kia will strive to become carbon neutral throughout the enterprise value chain by 2045.It aims to become one of the world’s leading electric vehicle brands by 2030, with annual sales of environmentally friendly models accounting for 55 percent of total sales.In addition to the enhancement of product strength, Kia will also actively carry out innovative marketing activities to present the “New Kia” and sustainable future business vision to Chinese consumers in the face of the digital wave and user-centered concept.Specifically, the brand will focus on the location of the dealer, strengthen regional marketing, and effectively increase the consumer brand experience touch point;At the same time, “door-to-door test drive” and “door-to-door service” will continue throughout the year, so that consumers can test drive new cars and meet the basic after-sales service at home, and enjoy a good brand experience.In addition, the new SI (Terminal Image System) will be applied to all 4S stores and city showrooms, allowing consumers to experience kia’s new brand image.With its new organizational structure, Kia will also accelerate its localization efforts by actively introducing local talents and professionals.Kia revealed that the brand will accelerate the implementation of the “Global Kia” image in the Chinese market, and through the restructuring of the organizational structure to form a more efficient decision-making process, solid promotion of various businesses, starting again in the Chinese market.In the future, Kia will continue to explore the most suitable management system for the Chinese market.In the terminal market, in the past year, in order to improve dealers’ income and strengthen dealers’ capacity, Kia has also carried out innovation in sales mode in China, further deepened the operation mode of “retail-centered”, cancelled the car picking index, rationalized the retail index, and constantly optimized business policies to promote stable operation of dealers.In the future, the new joint venture company will take this as the foundation to achieve win-win cooperation with Chinese dealer partners by formulating reasonable operating indicators, continuously optimizing business policies and rewarding excellent dealers.”In 2022 we will enter the first year of phase 2 development.”We will start again in The Chinese market as a new power startup.”Just as Yu Chang-seung, general manager of Dongfeng Yueda Kia, said, In the face of opportunities and challenges in China’s auto market, Kia is making a breakthrough by high-quality models, accelerating the transition to electrification and sustainable development.With the signing, Kia will set up shop in Yancheng and challenge its goal of producing and selling more than 4 million vehicles in China in the next decade.Meanwhile, based on the global turn-around strategy and “All New Kia, All New Start!”Business policy, accelerate the implementation of global strategy, integration of global resources, better feedback to the Chinese market, to provide Chinese consumers with more valuable products and services.

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