A day after Hyundai Motor unveiled its electrification roadmap, KIA Motor today unveiled its strategic roadmap for electrification at the 2022 CEO Investor Day virtual event.
The roadmap is built on the automaker's 'Plan S' strategy first announced in 2020 and reveals further details on how the company will achieve its vision to become a sustainable mobility solutions provider. Three key pillars support the vision – people, planet and profit, a release from the company stated.
In addition, the carmaker also announced its four key business targets for 2030. The aims include: accelerating electrification and achieving annual sales of 1.2 million battery electric vehicle (BEV) units by 2030; reaching four million annual vehicle sales by 2030, including over two million eco-friendly models; expanding the application of connected car features and autonomous driving technologies to all new vehicles. Besides, it aspires to become the number one brand in the global purpose-built vehicle (PBV) market by 2030.
Ho Sung Song, President and CEO, Kia Corporation, said, “Kia has been undergoing a full-scale transformation which has included changes in corporate vision, logo, product and design, and strategy. To achieve the company's vision of becoming a sustainable mobility solutions provider, we will focus on accelerating the transition to future business models.”
Sales Target
The aim is to achieve 4 million units in 2030, a 27% increase from Kia’s target for 2022. In 2022 it aims to sell 3.15 million units globally.
The company will also expand sales of eco-friendly vehicles, including BEVs, plug-in hybrid electric vehicles (PHEVs) and hybrid electric vehicles (HEVs). It will expand the proportion of eco-friendly cars from 17% of global sales in 2022 to 52% in 2030.
In major markets with strong environmental regulations and growing demand for EVs, such as Korea, North America, Europe and China, it plans to increase its proportion of eco-friendly car sales by up to 78% by 2030.
Building BEVs
Starting in 2023, the Korean automaker plans to launch at least two BEVs per year and build a full line-up of 14 BEVs by 2027. Compared to its previous plan to release 11 models by 2026, it will add two electric pickup trucks – a dedicated electric pickup truck and a strategic model for emerging markets – and an entry-level BEV model. Moreover, it plans to reaffirm its leadership in the EV market through its flagship electric vehicle, the EV9, set for launch in 2023.
Goals 2030
Starting with 160,000 BEV sales this year, the carmaker aims to sell 807,000 units in 2026 and 1.2 million in 2030 – a 36% increase from the 2030 EV target announced during last year's CEO Investor Day.
It projects that over 80% of its BEV sales in 2030 will come from Korea, North America, Europe and China, with BEVs taking a 45% share of total Kia sales in these major markets.
Plans For PBV Market
Kia plans to establish a dedicated purpose build vehicle (PBV) communication channel that can quickly and accurately respond to customer requirements.
It also aims to establish an integrated data platform to provide customised services and solutions according to the diverse business models of its PBV customers across areas such as vehicle charging, maintenance and management.
In the near term, Kia plans to develop PBV models derived from current models such as Niro Plus, due to be introduced later this year. While In the mid-to long term, it will develop dedicated PBVs, with the first dedicated model to be launched in 2025.
These dedicated PBV will be developed as a flexible structure that sits on a flat, skateboard EV platform so that the size and shape can be adjusted according to the purpose and customer needs, the company mentioned.
Financial Targets
By 2026, the company aims to reach a total of KRW 120 trillion ($99.34 billion) in gross revenue, with KRW 10 trillion ($8.28 billion) in operating profit and an operating profit margin of 8.3%. In addition, the company plans to garner 39% of operating profit from BEVs in 2026 by reducing fixed costs through volume expansion and cost reduction from technology development.
In addition, it expects that by 2026, the contribution to operating profit from all eco-friendly models will reach 52%, exceeding that of internal combustion engine models.