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After Hyundai closed its first factory in Beijing, Kia may also have to withdraw a factory in China temporarily because of Hyundai's sluggish sales in China.

South Korea's Kia may suspend operations at its first plant in China as part of the company's long-term efforts to improve competitiveness, Reuters reported Monday.

Kia subsequently issued a statement saying that the company is currently reviewing a number of plans to enhance its production and sales competitiveness in the Chinese market.

Dongfeng Yueda Kia was established in 2002 by Dongfeng Group, Jiangsu Yueda Investment Co., Ltd., and Kia Automotive Co., Ltd., Korea. The factory is located in Jiangsu. Yancheng, at present, three factories have been put into operation, with an annual output of 900000 units.

Among them, the first factory has an annual production capacity of 150000 vehicles, producing smart running and KX7 models; the second factory was put into production in December 2007, with a total design capacity of 300000 vehicles; and the third plant was put into production in early 2014, with a design capacity of 450000 units.

If the first factory is confirmed to be closed, Kia will have only two factories left to manufacture, the production models will be transferred to the second and third plants, and the annual production capacity will drop to 750000 units. However, at present, Israel's sales in China are still in a state of serious overcapacity.

Dongfeng Yueda Kia sold 370000 vehicles in 2018, roughly the same as in 2017, while Kia reached an annual sales peak of 650000 in 2016.

A few years ago, Korean brands gained a foothold in the Chinese market with their appearance design and cost-effective advantages. now, for three consecutive years, car sales in China have exceeded one million, and Kia has also risen to the height of 650000. But changes in the market eventually led to the advantage of Korean cars become moderate, brand strength also lags behind the mainstream joint venture brands, products sandwiched in independent models and joint venture models to survive, sales have suffered a sharp decline.

China's auto market has declined after explosive growth, and the days of joint venture brands lying down to make money are gone forever. Companies such as Dragon Motor, Ford and Kia have struggled and will focus on stability in the future. it's hard to get back to the peak.

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