Asia Motors Industries, traded as Asia Motors (, ), was a South Korean car manufacturer established in 1965 and closed in 1999. From 1976 onwards, it was a subsidiary of

Kia Motors Kia Corporation (, formerly known as Kyungsung Precision Industry (京城精密工業) and Kia Motors Corporation) is a South Korean multinational corporation, multinational Automotive industry, automobile manufacturer headquartered in Seoul, ...

History

In 1962, as one of the measures to comply its First Five-Year Economic Development Plan, the Korean government passed a law exempting from taxes imported parts to assemble KD cars locally. In 1965, as a result of these incentives, Asia Motor Industries was established in

Gwangju Gwangju (; ), formerly romanized as Kwangju, is South Korea's list of cities in South Korea, sixth-largest metropolis. It is a designated Special cities of South Korea, metropolitan city under the direct control of the central government's Home ...

through the financial support of entrepreneur Lee Mun-hwan. The company was initially manufacturing military vehicles, trucks and buses but soon it began negotiations with

Fiat Fiat Automobiles S.p.A., commonly known as simply Fiat ( , ; ), is an Italian automobile manufacturer. It became a part of Fiat Chrysler Automobiles in 2014 and, in 2021, became a subsidiary of Stellantis through its Italian division, Stellant ...

and in 1970 it started to assemble Fiat 124 models. It diversified into the SUV and heavy vehicles market, including large and medium duty trucks, special military vehicles, lightweight cars, civilian jeeps (a small

jeep Jeep is an American automobile brand, now owned by multi-national corporation Stellantis. Jeep has been part of Chrysler since 1987, when Chrysler acquired the Jeep brand, along with other assets, from its previous owner, American Motors Co ...

look-alike called the Rocsta and later the Retona), motor vehicle components, to include engines, and buses and mini-buses. In 1969, Asia Motors was acquired by Dongkuk Steel. In 1973, the South Korean government launched a plan to promote the production of low-cost cars for export. Asia Motors was unable to satisfy the plan's conditions, losing its car assembly permits, and was purchased by Kia in 1976, as the government promised Kia, in exchange of doing so, a monopoly of the military vehicle production for South Korea. In 1978, Asia Motors signed an agreement with

Hino Motors Hino Motors, Ltd., commonly known as Hino, is a Japanese manufacturer of commercial vehicles and diesel engines (including those for trucks, buses and other vehicles) headquartered in Hino, Tokyo. The company was established in 1942 as a corpora ...

of Japan with the aim of achieving

economies of scale In microeconomics, economies of scale are the cost advantages that enterprises obtain due to their scale of operation, and are typically measured by the amount of Productivity, output produced per unit of cost (production cost). A decrease in ...

for its low-volume products. Hyundai in turn purchased Kia and the Asia brand was discontinued in 1999. The Rocsta's replacement, the Retona, was sold under the Kia brand.

Failed Brazilian production

In 1994, Asia Motors do Brasil, an independent importer of Asia vehicles, was established in Brazil. Asia Motors do Brasil achieved some sales success and, in 1996, it signed an agreement with the Brazilian government for building an assembly plant at

Camaçari Camaçari is a city in Bahia, Brazil. It is located at . It is part of the Salvador, Bahia, Salvador Metropolitan Region (''Região Metropolitana de Salvador''), being the industrial city of the metropolis. Camaçari covers , and had an estimate ...

in exchange of tax exemptions for imported vehicles. The plant was never completed, and the unpaid taxes prevented Kia's parent company Hyundai from building a factory in the country until 2012, when the Brazilian justice determined Hyundai was not bound to pay them, as it was not related to the importer. The first Hyundai owned factory in Brazil was opened in 2012 in Piracicaba, having produced only the HB20 (including the HB20S notchback and the off-road themed HB20X derivatives) and the Creta, while Kia vehicles for sale in Brazil are all imported from South Korea and Uruguay.

Vehicles

Passenger vehicles

* Fiat 124 * Rocsta * Retona

Vans

*Asia Topic (

Mazda Bongo The , also known as Mazda E-Series, Eunos Cargo, and the Ford Econovan, is a cabover van and pickup truck manufactured by the Japanese automobile manufacturer Mazda since 1966. The Bongo name was also used for the #Friendee, Bongo Friendee, whic ...

/ Kia Bongo I) *Asia Towner ( Daihatsu Hijet/ Kia Towner)

Small / medium-sized buses

* Asia Combi (AM805/815/825) - based on the Mazda Parkway *Asia AM808 ( Hino Liesse) *Asia Cosmos (AM818) ( Hino Rainbow)

Large bus

* Asia AM927 / AM937 / AM928 (city buses), AM929, AM939, AM949 (Gran Bird)

Truck

*Asia Granto (AM) truck ( Hino Ranger) *Asia AM420 ( Hino Profia)

Other

* KM900 APC - license version of the Fiat 6614

Armoured Personnel Carrier An armoured personnel carrier (APC) is a broad type of armoured military vehicle designed to transport personnel and equipment in combat zones. Since World War I, APCs have become a very common piece of military equipment around the world. Acc ...

for

Republic of Korea Army The Republic of Korea Army (ROKA; ), also known as the ROK Army or South Korean Army, is the army of South Korea, responsible for ground-based warfare. It is the largest of the military branches of the Republic of Korea Armed Forces with 365,0 ...

. * Massey Ferguson 362A - Asia Motors also assembled/distributed

Massey Ferguson Massey Ferguson is an agricultural machinery manufacturer, established in 1953 through the merger of farm equipment makers Massey-Harris of Canada and the Ferguson Company of Ireland. It was based in Coventry then moved to Beauvais in 2003 when ...

tractors. * Massey Ferguson 390A - Asia Motors also assembled/distributed

tractors.

References

External links

The history of Asia Motors Australia
( archived on May 9, 2005) {{Authority control Vehicle manufacturing companies established in 1965 Vehicle manufacturing companies disestablished in 1999 Kia Motors Defunct motor vehicle manufacturers of South Korea