Human Horizons to manufacture cars at Kia's joint venture

Chinese electric car startup Human Horizons will produce its first model at a plant owned by South Korean carmaker Kia's joint venture in China, with mass production scheduled to start in 2021.

This is part of a recent deal the startup signed with Dongfeng Yueda Kia and parent company Yueda Group in strategic cooperation about new energy vehicle manufacturing and supply chains, said Human Horizons in a statement last week.

The startup did not offer details about the model. Human Horizons bills itself as the developer of future mobility solutions encompassing smart vehicles, smart roads and smart cities.

It's focused on innovation and has been working on developing smart electric vehicles since its establishment in 2017.

Human Horizons said the cooperation is intended to "seize the opportunity created by electrification, intelligent transportation and the upgrading of the automotive industry" in China.

This is the latest step of cooperation between Human Horizons and Yueda.

The two joined hands in September 2017 in new energy vehicles. Yueda Group increased its investment in late 2018.

"Under this continued partnership, there are further opportunities for fruitful collaboration in the near future," said Human Horizons.

According to Chinese media reports, the three sides will set up a team and renovate the joint venture's No 1 plant located in Yancheng, Jiangsu province for Human Horizons models.

The joint venture has more than a decade of experience in car manufacturing, with more than 5 million vehicles having rolled off its assembly lines since its establishment in 2002.

Analysts said the cooperation will extend a helping hand to the joint venture as well.

Kia has seen its sales slump in China as part of an overall decline in China's automotive market and increased competition from Chinese brands.

The joint venture is also planning to roll out its new energy vehicles, which will be produced at the other two plants, according to business website Yicai. The venture will offer a total of six models by 2020.

Other electric car startups outsource production at established carmakers, but usually in Chinese ones. For instance, JAC Motors, a State-owned carmaker in East China's Anhui province, is producing vehicles for Nio, the most renowned electric car startup in China. Xpeng Motors is having its first vehicle produced at Haima Automobile's plant in central China's Henan province.

China has been the largest market for new energy vehicles since it passed the United States in 2015. The China Association of Automobile Manufacturers expected sales in the segment to reach 1.6 million this year, up from 1.26 million from 2018.