Kia Motors to Invest 29 Trillion Won in Future Cars... "1 Million Eco-Friendly Vehicles Sold by 2026"

[Asia Economy Reporter Suyeon Woo] Kia Motors has decided to invest 29 trillion won over the next six years to lead the era of electric vehicle popularization and transition into a mobility solutions company. It also set a goal to achieve a global top-tier return on equity (ROE) of 10% by 2025 and to sell 1 million eco-friendly vehicles, including 500,000 electric vehicles, in 2026 when electric vehicle adoption is expected to accelerate.

On the morning of the 14th, Kia Motors CEO Han-woo Park held a CEO Investor Day at the Conrad Hotel in Yeouido to present the mid- to long-term future strategy "Plan S" and the "2025 Financial and Investment Goals" to investors. This is the first time Kia has communicated with investors through a CEO-led investor relations (IR) event.

CEO Park said, "Kia's Plan S is a proactive future business transformation plan centered on two pillars: electric vehicles and mobility solutions," adding, "We will reinvent ourselves as an innovative brand through customer-first products and services."

On this day, Kia announced mid- to long-term financial targets of achieving an operating profit margin of 6% and an ROE of 10.6% by 2025. Compared to Hyundai Motor Company's financial targets announced at the end of last year (61 trillion won investment and 8% operating profit margin), these figures are somewhat conservative but are supported by more tangible plans to secure profitability.

First, to secure leadership in the electric vehicle market, Kia will launch dedicated electric vehicle models next year and build a full lineup of 11 electric vehicle models by 2025. It plans to develop advanced markets such as the United States and Europe, where electric vehicle adoption is already active, as its main markets, increasing the share of electric vehicle sales to 20% within the next six years and securing a 6.6% share of the global electric vehicle market.

Kia will also expand mobility service businesses based on electric and autonomous vehicles targeting major cities. The profits secured through these mid- to long-term strategies will be shared with investors to maximize shareholder value.