Kim Long Motor and Changan Automobile have forged a partnership to construct a new vehicle manufacturing plant in Hue, Vietnam.
The proposed manufacturing facility will produce Kim Long Changan Vietnam 5-7-seater passenger vehicles.
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The facility, covering 30ha, will be designed to produce 50,000 vehicles annually and will employ Changan’s “advanced” production technology.
The construction of the plant is scheduled to begin in 2025, with an initial localisation rate of 40%, increasing to over 80% by mid-2026.
Initially, the companies have chosen to start with the DEEPAL brand for the Vietnamese market, with plans to launch five models within the next three years.
In addition to vehicle production, the partnership between Kim Long Motor and Changan Automobile will include the establishment of a network of 80 showrooms nationwide.
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By GlobalDataChangan Automobile Group vice-president Wang Hui said: “This collaboration with Kim Long Motor Hue marks a crucial step in Changan Automobile’s globalisation strategy, and will serve as an important starting point for Changan Automobile’s entry into the Vietnamese market.
“Both parties will engage in extensive cooperation in areas such as product technology, brand marketing, supply chain, OEM partnerships, social responsibilities, and more.”
Kim Long Motor general director Dao Viet Anh said: “2024 has witnessed a strong transformation in Vietnam’s automotive market, particularly the rise of electric and new energy vehicles. This presents tremendous opportunities alongside significant challenges.
“With over 163 years of experience and superior technological capabilities, Changan Automobile.
“Kim Long Motor is committed to leveraging all resources, technology, and close cooperation with Changan Automobile to achieve the shared goals, quickly putting the Kim Long Changan Vietnam 5-7-seater passenger car manufacturing plant into operation, and writing a new chapter in Vietnam’s automotive industry together.”
