Dongfeng Yueda Kia aims to break into Top 10 automakers in 2011

Shanghai October 22 (Gasgoo.com) Dongfeng Yueda Kia Motors Co., Ltd., a joint venture between Dongfeng Motor Corp, Kia Motors and Jiangsu Yueda Investment Co., posted record year-to-date sales of 250,000 units in China, surpassing total sales in 2009, its General Manger Cui Chengqi said recently in an interview with Shanghai Securities News.

When asked how he thought about the prediction that the company's profit per vehicle will more than double 2008's as the auto output increases, Cui said we have made it a clear goal to sell 430,000 vehicles in 2011, with which we aim to break into China's Top 10 automakers.

Moreover, Dongfeng Yueda Kia Sales Minister Su Nanyong said we will import new models tailored to the needs of Chinese consumers in the future. For example, we have launched a new Kia Sportage (Zhi Pao) on October 20 in China to expand our business in the mid- and high-end compact SUV market, and next year we will release anther mid- and high-end model.

Given rapid growth of automobile consumption in China's second- and third-tier cities, we have already adjusted our entire distribution layout. On the one hand, we will put into full implementation of the network penetration strategy, namely, both the dealership and chain store model will be utilized to promote sales. On the other hand, the number of dealerships will grow to 440 from the current 246, Su added.

Different from many vehicle manufacturers influenced by economic crisis, Hyundai Kia had a great performance and has thus raised its full-year sales target for 2013 to 6.5 million units, compared with 4.18 million units in 2009. To achieve the goal, Dongfeng Yueda Kia will launch more products and make them more accessible to China's auto market so as to better meet consumers' demand, Cui said.

The company will also consider local production of products generating relatively good sales, such as Zhi Pao and Kia K5, Cui said, adding that products that are average in performance in the Chinese market would still be imported and sold through the joint venture's sales network in China.

Yueda, holding 25% stake in the three-way tie-up, saw its first-half profit soar 580% to 339.56 million yuan ($51 million), compared to 49.94 million yuan for the same period last year, Cui said.