Kia’s Yancheng plant becomes export hub as EV5 sales grow

Kia ‘EV5’

Kia Corp. is accelerating its efforts to turn its China plant into an export hub, with half of its EV5 sales now coming from markets outside China.

Kia sold 5,994 EV5 units between January and July 2024, according to industry sources on Thursday, of which 3,200 were sold in China while nearly 2,800 units were exported. Kia highlighted that most exports were to neighboring countries with strong trade ties to China. Australia led with about 1,000 units, followed by Thailand with 900, and Colombia, an emerging market, with 500 units. The EV5 has expanded to 20 countries since its launch in October 2023.

It is common in the global auto industry for production and sales countries to differ. Kia produces around 340,000 units annually at its Žilina plant in Slovakia, for example, which are mostly exported to Western Europe. But the EV5’s evolution from a model designed and targeted for the Chinese domestic market to an export vehicle is unique.

Kia’s Yancheng plant initially set a target of producing 30,000 units annually, although early results were underwhelming. While the EV5 surpassed 1,000 units in sales by the end of 2023, monthly sales fell to around 300 earlier in 2024 but exports to Australia and Thailand starting in April 2024 turned things around. The EV5 set new monthly sales records in April and May, with 1,182 and 1,782 units sold, respectively, with Kia’s China division officially announcing plans to increase EV5 exports in June.

Production at the Yancheng plant nearly doubled, with sales rising from 79,120 units in the first seven months of 2023 to 131,730 units in the same period a year later, surpassing Hyundai Motor Co.’s Beijing plant by 20,000 units.