[Asia Economy Reporter Su-yeon Woo] Kia Motors is leading the era of electric vehicle popularization by establishing a full lineup of 11 models by 2025 and launching an electric vehicle-exclusive model next year. The company aims to secure a 6.6% share of the global electric vehicle market and expand the proportion of eco-friendly vehicle sales to 25% by 2025.
On the 14th, Kia Motors President Han-woo Park held a CEO Investor Day at the Conrad Hotel in Yeouido, revealing the '2025 Financial and Investment Goals' that include these plans. This is the first time Kia has communicated with investors through a CEO-led investor relations (IR) session. The Investor Day event, which started at 10 a.m. and continued into the afternoon, unveiled Kia’s eco-friendly vehicle vision based on electric vehicles and featured a variety of Q&A sessions with investors.
Kia Motors President Han-woo Park is announcing the mid-to-long-term financial strategy goals at the Kia Motors CEO Investor Day held on the 14th. Photo by Kia Motors
On this day, Kia set a global market sales target of 3.5 million units by 2025, including internal combustion engine and eco-friendly vehicles, and set goals to sell 500,000 electric vehicles and 1 million eco-friendly vehicles in 2026, when electric vehicle adoption is expected to accelerate.
To achieve this, Kia plans to build a full lineup of 11 electric vehicle models by 2025 and expand the share of electric vehicle sales to 20% in advanced markets such as the United States and Europe, where electric vehicle adoption is already growing, nurturing these as key markets.
In the short term, Kia will launch a dedicated electric vehicle model applying its electric vehicle platform in 2021. This dedicated electric vehicle, featuring a crossover style that blurs the line between passenger cars and SUVs, can travel up to 500 km on a single charge and can be ultra-fast charged within 20 minutes.
During the event, questions about Kia’s electric vehicle battery supply were also raised. A Kia official stated, "We have already secured enough battery supply to use until 2022, and supplies thereafter will be decided through competitive bidding." They also explained that 500,000 battery units will be needed by 2025 and 740,000 units by 2029.
To expand electric vehicle sales, Kia is also pursuing innovation in cost structure and sales methods. By introducing an electric vehicle architecture (basic vehicle framework) development system, Kia expects to reflect market needs from the product planning stage and reduce costs. In terms of sales methods, Kia is considering ways to ease purchase burdens such as customized subscription models and businesses related to used batteries, including electric vehicle battery rental and leasing.
Furthermore, Kia plans to expand mobility service businesses based on electric and autonomous vehicles targeting major cities. Initially, mobility hubs will be established at key locations, and urban shuttle-type autonomous Purpose Built Vehicles (PBVs) connecting these hubs will be developed and introduced.
Kia plans to develop an autonomous driving platform in 2022 and begin full-scale mass production from the second half of 2024, supplying it to global automakers and mobility service providers. Through this, Kia aims to discover new revenue models in transportation sectors such as logistics and distribution and lead the PBV market targeting corporate customers.
Meanwhile, Kia announced mid- to long-term financial goals to invest 29 trillion KRW by 2025 and achieve an operating profit margin of 6% and ROE of 10.6%. The investment funds will be secured through improving profitability in the existing internal combustion engine business, with investment capabilities focused on securing leadership in future businesses such as electric vehicles and mobility solutions.
President Park emphasized, "Kia’s Plan S is a proactive future business transformation plan centered on the two pillars of electric vehicles and mobility solutions," adding, "We will become an innovative brand through products and services that prioritize customers above all."
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