According to a comprehensive foreign news report, Hyundai-Kia plans to launch three low-cost SUV models in China in the next two years, including Hyundai and Kia. The new car is designed to challenge China's SUV leading company Great Wall Motor. This is after the Volkswagen, another foreign car company wants to release cheap SUVs in China. Starch Machine,Cassava Starch Machine,Starch Making Machine,Potato Starch Machine Shuangfeng Nongjiabao Machinery Technology Co., Ltd , https://www.starchmakingmachine.com
Informed sources have revealed to the media that Hyundai-Kia will launch three new low-cost SUVs in the Chinese market, aiming to compete with the cost-effective SUVs of independent brands such as Great Wall Motor. Starting in November 2017, Hyundai Motor will start production of a low-cost compact SUV in Chenzhou; in 2018, it will launch a small SUV in Chongqing. Kia Motors will release an entry-level small SUV in China in 2018.
In addition to the above three SUVs, Kia is also preparing to launch its new mid-level SUV in China starting next year.
From the perspective of sales of foreign-owned car companies in China, Hyundai-Kia is currently ranked third in the Chinese market, second only to General Motors and Volkswagen. However, Hyundai-Kia's performance has been weak in recent years, and its market share has dropped from 10.4% in 2014 to 8.9% in 2015, a record low in seven years. Until the most recent month of this year, the joint venture company Beijing Hyundai sales resumed its upward trend, and it was still optimistic to rely solely on the ix25 main model to achieve growth.
Among the foreign brands, Hyundai-Kia is cost-effective, and is often chosen by China's domestic independent brands as the target. The loss of Korean cars in China, and even the decline in sales volume, is closely related to the expansion of independent brands with SUVs. Hyundai-Kia also recognizes the need to cope with the challenges of Chinese brand cars and the weakness of its new model in the SUV field.
Therefore, updating the product lineup, especially with the help of cheap cars, has become a new round of boosting strategy for Hyundai-Kia in the Chinese market.
With low-priced cars, especially SUVs, they compete for their own brand cakes. In fact, other foreign-owned car companies have held the same idea. Volkswagen plans to launch a brand new cheap car brand by FAW-Volkswagen in 2018. The first two cars are SUVs. GM is also working with SAIC to build low-priced cars that will be sold to both China and other markets.
Some people believe that China's own brands are currently achieving sales growth through the SUV boom. However, with the influx of low-priced foreign brands in 2018, it is likely to become the turning point for the suspension of independent auto companies.