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Announcing the plan to build the Kim Long Truong An Vietnam passenger car manufacturing plant (5-7 Seats)

TTH.VN - On the morning of January 14, Kim Long Motor Hue Joint Stock Company and Changan Automobile Group officially announced the plan to build the Kim Long Truong An Vietnam passenger car manufacturing plant (5-7 seats).

Signing contract for 500 KIMLONG X9 minibusesThe KIMLONG X9 minibus is first launched in Hue

 The signing ceremony promises to usher in a new chapter for Vietnam’s automotive industry

As part of the event, a cooperation agreement signing ceremony on vehicle production was held between Changan Automobile Co., Ltd. and Kim Long Motor Hue Joint Stock Company, marking a significant step toward extensive development and collaboration in the regional automotive industry.

Changan Automobile Group, established in 1862, is headquartered in Jiangbei, Chongqing, China. It boasts the highest sales volume in China and is also the country’s largest and oldest state-owned automobile manufacturer. With a diverse product range covering both commercial and passenger vehicles under renowned brands such as Changan, Deepal, and Avatr, the group not only ensures top-tier quality but also leads the way in innovation trends.

Mr. Vuong Huy (Wang Hui), Deputy General Manager of Changan Automobile Group, shared: “This collaboration with Kim Long Motor Hue marks a significant step in Changan Automobile’s global strategy, ‘Hai Nap Bach Xuyen’, and will serve as an important starting point for Changan Automobile to enter the Vietnamese market. The two parties will engage in extensive cooperation in areas such as product technology, brand marketing, supply chains, OEM collaboration, social responsibility, and more.”

On its development journey, Kim Long Motor has chosen a distinctive strategy by focusing on the research, development, and production of commercial vehicles under a Vietnamese brand. With a commitment to becoming a market leader in the domestic automotive sector, not only in quality but also in the production volume of internal combustion engine vehicles and new energy vehicles - including 4-7 seat hybrid and electric passenger cars, electric buses, and electric trucks (spanning light, medium, and heavy-duty models) - Kim Long Motor places international market exportation as its central development goal.

Accordingly, the collaboration strategy between Kim Long Motor and Changan Automobile in the Vietnamese market will focus on three main aspects: selecting a unique product range, developing a distribution system aligned with brand name standards, and making comprehensive investments in the Kim Long Trường An Vietnam 5-7 seat passenger car manufacturing plant.

Currently, Kim Long Motor and Changan Automobile are selecting internationally successful products that align with the characteristics of the Vietnamese market. The initial focus will be on DEEPAL-branded products, with five vehicle models planned for launch over the next three years to meet the growing demand for green and smart travel among Vietnamese consumers.

In its distribution network development strategy, Kim Long Motor leverages all available resources in combination with Changan Automobile’s global expertise to establish a nationwide sales and service network. The goal is to operate 80 showrooms within the next three years, creating a cohesive system that delivers a consistent customer experience aligned with Changan’s global distribution standards.

 Changan Automobile executives visit production activities at the Kim Long Motor Hue Automotive Production and Assembly Industrial Zone

The gradual diversification of Changan Automobile’s product range in the Vietnamese market, along with plans for domestic manufacturing and assembly at the Kim Long Truong An Vietnam 5-7 seat passenger car manufacturing plant located in the Kim Long Motor Hue Automotive Production and Assembly Industrial Zone, represents a strategic step toward sustainable brand development.

Covering a construction area of 30 hectares with a designed capacity of 50,000 vehicles per year, the plant will utilize Changan’s cutting-edge, state-of-the-art production technology. Construction is scheduled to begin in 2025, with an initial localization rate of 40%, aiming to exceed 80% by qr.2, 2026. Once operational, the Kim Long Truong An Vietnam 5-7 seat passenger car manufacturing plant will not only create thousands of job opportunities but also contribute significantly to the state budget and the economic and social development of Hue City.

Mr. Dao Viet Anh, General Director of Kim Long Motor, shared: “The year 2024 has marked a significant transformation in the Vietnamese automotive market, particularly with the rise of electric and new energy vehicles. This presents tremendous opportunities but also considerable challenges. However, with over 163 years of experience and superior technological capabilities, we firmly believe in the success of Changan Automobile. Kim Long Motor is committed to maximizing resources, leveraging technology, and working closely with Changan Automobile to realize our shared goals, swiftly bringing the Kim Long Truong An Vietnam 5-7 seat passenger car manufacturing plant into operation and together writing a new chapter for Vietnam’s automotive industry.”

Story and photos: LE THO
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