Niro EV Deployed Locally in Singapore... Last-Mile Delivery PBV Demonstration Agreement
[Asia Economy Reporter Yu Je-hoon] Kia is partnering with a smart company in the cold chain (low-temperature distribution system) sector to launch a 'Purpose Built Vehicle (PBV)' pilot project in Singapore. The PBV business is a core part of Kia's mid- to long-term business strategy, 'Plan S.'
Kia announced on the 2nd that it recently signed a Memorandum of Understanding (MOU) for the 'Last Mile Delivery PBV Pilot Project' with cold chain startup S-Lab Asia. Last mile delivery refers to the final stage of logistics where goods are delivered to consumers.
This agreement aims to strengthen capabilities in developing next-generation PBV models optimized for last mile logistics services in urban areas, responding to the rapidly growing e-commerce market, and to advance the PBV business through actual service operations.
S-Lab Asia is a startup that manufactures fresh product delivery boxes for cold chains and provides transportation services, with a logistics network for selling and distributing fresh products domestically and in Southeast Asia. Kia will collaborate with S-Lab Asia to begin validating the PBV business model by deploying the Niro EV for fresh product delivery in Singapore in the first half of this year.
The Niro EVs used in the pilot project will be modified so that the second-row seat space is flat for easy loading of delivery boxes. Some vehicles will have the second-row seats removed to increase space utilization, making them more suitable as PBVs.
Through this pilot project, Kia plans to develop next-generation PBV vehicles optimized for last mile delivery, develop a CaaS (Car as a Service) platform, establish an electric vehicle charging ecosystem, and secure capabilities to build electric vehicle fleet management systems and services.
Kia chose Singapore for the pilot project because the city’s urban area and traffic environment are suitable for operating and validating PBV businesses for last mile delivery. Additionally, Singapore has declared a ban on internal combustion engine vehicles by 2040 and has significantly expanded electric vehicle purchase subsidies since January this year, making it an ideal location to lay the foundation for an electric vehicle-based PBV business, according to the company.
Accordingly, Kia plans to establish a collaborative system for the PBV pilot project in Singapore with Hyundai Motor Group’s Singapore Global Innovation Center, SP Group?the largest electric vehicle charging operator in Singapore?and local Kia dealership Cycle & Carriage.
A Kia official stated, "Through this agreement, we will establish Kia’s image as a collaborative partner providing new value through various mobility solutions," adding, "We will strive to lead the global PBV market by building partnerships with various businesses based on open innovation, not only in last mile services but across diverse sectors."
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