Dongfeng Yueda Kia debuts new K3 at Chengdu Motor Show

Gasgoo.com (Shanghai September 3) - Dongfeng Yueda Kia has plans to bring over a variety of models ranging across all segments to China, China Business News cited joint venture General Manager Su Nanyong as saying at the floor of the Chengdu Motor Show. Mr. Su annunciated his intent to see the JV's total annual sales reach one million vehicles in the future.

Dongfeng Yueda Kia presented the new K3 (pictured) at the floor of the ongoing show. The K3 is scheduled to simultaneously hit both Korean and Chinese markets next month. The compact will help the JV fill the gap between the K2 and K5. In order to prevent internal competition, the JV may very likely halt production of the Cerato. However, there are reports that the Cerato will sold under the JV's new Dianyue own brand. The K3 will be sold alongside its predecessor, the Forte.

Alongside the Hyundai Elantra, the K3 will aid in increasing the presence of Korean brands in the ever-competitive compact market. It should also help boost Dongfeng Yueda Kia's financial performance, with Citic Securities automotive analyst Li Chunbo voicing his predictions that the JV's net profit may reach 3.2 billion yuan ($502.12m) this year, which would bring in 800 million yuan ($125.53m) for parent Yueda Group.

Dongfeng Yueda Kia has made large leaps over the last few years, with the joint venture ranking as one of the top ten Chinese automobile enterprises in 2011. The JV's sales in the first half of the year totaled 220,000 vehicles, equivalent to year-on-year growth of over 16 percent. The JV's sales goal for the year has been set at 480,000 vehicles.