"Stable Domestic and International Demand Amid Parts Shortage Relief: A Visit to Kia Gwangju Plant"

One of Kia's Top 3 Domestic Production Bases
Producing Sportage, Soul, Seltos, Bongo
280,000 Units Produced in H1... 27% Increase YoY

On the 29th of last month, I visited Kia Autoland Gwangju Plant 1. All facilities were operating rapidly to produce the Soul, mainly exported to Europe, and the compact sport utility vehicle (SUV) Seltos, which has high domestic and international demand. A company official stated that, including Plants 2 and 3, which I could not tour in person, virtually all production lines for passenger cars and small commercial vehicles are running at full capacity.

The number of vehicles produced at this plant in the first half of this year was about 280,000, an increase of approximately 27% compared to the same period last year. Production disruptions caused by vehicle semiconductor supply issues had occurred, but with smoother parts supply and increased domestic and international demand, surpassing 500,000 units annually for the first time in eight years has become possible. This plant, one of Kia's three major domestic production bases (Hwaseong, Gwangju, Gwangmyeong), had not exceeded an annual production volume of 500,000 units since 2015 (533,483 units). Last year, it produced 472,479 units.

Kia Autoland Gwangju Plant 1 Production Line

Starting as Asia Automobile Industry in 1965, this plant mainly produced commercial vehicles such as trucks and buses in the past, but rapidly expanded after being acquired by Hyundai Motor Company in 1998. It turned profitable in 2001, less than three years after joining Hyundai Motor Group, and steadily increased production lines to establish a 500,000-unit annual production system by 2010. Before that, it produced about 60,000 units annually, mainly low-profit commercial vehicles.

Since complete vehicle production typically benefits from economies of scale, increasing scale enhances the competitiveness of the plant by lowering production costs per unit. By strengthening competitiveness both internally and externally, Kia Gwangju Plant has become the largest automobile production base in the Honam region and the largest manufacturing company in Gwangju, according to a company official.

Final complete vehicle line of the 3rd generation Sportage model released in 2010. Kia increased the annual production capacity of the Gwangju plant to 500,000 units at that time.

The vehicle that played a decisive role in boosting Kia Gwangju Plant's competitiveness is the mid-size SUV Sportage. Introduced from the second generation model in 2004, it was the first model at this plant to surpass a cumulative production volume of 1 million units in 2011. As of May this year, the cumulative production volume reached 2.93 million units and is expected to exceed 3 million units by the end of the year. The Sportage was also the first vehicle exported from this plant to the North American market.

Including the bus and military vehicle production lines in the nearby Hanam Industrial Complex, about 7,800 employees work at Kia Gwangju Plant. Currently, it produces approximately 2,087 units daily across eight models. In the vehicle model export rankings from January to May this year, two models, Sportage (6th place, 58,539 units) and Seltos (8th place, 51,678 units), ranked within the top 10.

Kia Autoland Gwangju Plant 1 Final Production Line

Increasing the production volume of eco-friendly vehicles in line with the electrification trend is a challenge the plant faces. In the past, it produced the Soul electric vehicle and at one point was the domestic plant that exported the most dedicated electric vehicles. Currently produced electrified vehicles include the Sportage Hybrid, Soul electric vehicle, and the small commercial vehicle Bongo electric vehicle. Additionally, labor and management have agreed to produce the OV (project name), a strategic export model for China and other markets starting in 2025. Kia's main electric vehicle, the EV6, is produced at Hwaseong Plant, and the recently launched EV9 is produced at Gwangmyeong Plant.

This content was produced with the assistance of AI translation services.