[Featured Stock] Kia Builds New Factory for the First Time in 25 Years... Motrex Rises on PBV-Only News

[Asia Economy Reporter Ji Yeon-jin] Motrex, an automotive electronic parts company, is gaining attention as Kia announces plans to establish a dedicated Purpose-Built Vehicle (PBV) factory.

According to industry sources on the 25th, Kia plans to build a dedicated PBV factory within its Hwaseong plant, aiming to mass-produce mid-sized PBVs by 2025. The completion is expected by the end of 2024.

Earlier, at the '2022 CEO Investor Day' held on the 3rd, Kia revealed plans to launch the Ray single-seater van, a derivative PBV based on existing mass-produced vehicles, as well as the Niro Plus, a mobility service-exclusive model, within this year. In 2025, Kia intends to release a dedicated PBV applying a skateboard platform.

Motrex is known to supply infotainment system components for the PBV vehicles Kia plans to launch this year. The PBV business refers to the commercial vehicle market, which, unlike the existing mass-production system of passenger cars, produces customized vehicles tailored to individual customers. Jun-ho Park, a researcher at Hanwha Investment & Securities, stated, "In the PBV market, even for advanced countries and domestic vehicles, if the annual sales volume is not large, opportunities for orders may be given to Motrex, which specializes in small-lot, multi-product production." He added, "It is necessary to pay attention not only to whether the performance turnaround continues but also to the possibility of securing a role in the PBV market from a long-term perspective."

As of 10:59 AM today, Motrex is trading at 6,030 KRW, up 3.43% (200 KRW) compared to the previous day.