In 2019, Kia Motors considered suspending operations at its primary manufacturing plant in China as part of strategic reviews to improve competitiveness amid declining sales and excess production capacity, according to a source with direct knowledge of the matter.
The South Korean automaker, part of the Hyundai Motor Group, operates three production sites in Jiangsu Province through joint ventures with Dongfeng Motor Group and Jiangsu Yueda Investment Co Ltd. These facilities have been central to Kia's Chinese market presence.
Hyundai Motor, Kia's parent company, also evaluated potential production cuts at its oldest Chinese plant as both entities grappled with reduced demand and overcapacity in the world's largest automotive market. A Kia spokesperson confirmed the company was analyzing options to strengthen its competitive position in China.
