Kia Pickup Truck, Domestic Production and Launch in 2024

Labor and Management at Hwaseong Plant Reach Final Agreement at Employment Subcommittee
Pickup Trucks and PBVs to Be Produced Domestically
First Time in Over 40 Years Since Kia Brisa Pickup
Hyundai Also Produces and Sells Only at North American Plants
Ssangyong Aiming for 2024 Launch Under Development

Electric vehicle EV6 being produced at Kia Hwaseong Plant. It is manufactured at the existing Hwaseong Plants 2 and 3. The company's labor and management agreed to start producing electric pickup trucks at Plant 1 from December 2024.

[Asia Economy Reporter Choi Dae-yeol] Kia has decided to launch a pickup truck in the domestic market in 2024. Among domestic automakers, only SsangYong Motor has produced this type of vehicle, with some imported brands also handling it.

According to a comprehensive report from our coverage on the 16th, the labor-management council at Kia’s Hwaseong plant recently concluded several months of employment security subcommittee meetings and reached a final agreement on this matter. Earlier, as part of its mid- to long-term electrification strategy, the company decided to develop purpose-built vehicles (PBVs) and selected Hwaseong Autoland (Kia Hwaseong Plant), one of its domestic production bases. Subsequently, labor and management negotiated over production volume and plant workforce allocation.

Kia’s labor and management agreed to produce the currently developing pickup truck (project name TK) at Hwaseong Plant 1. Mass production is targeted for December 2024. Initially, the company planned to produce only the pickup truck’s cargo bed at this location, but it was decided to manufacture the entire pickup truck here. A new production line will be established for PBVs, while the pickup truck will be produced by converting the existing plant.

Hwaseong Plant 1 currently manufactures the compact sedan K3, mid-large sports utility vehicle (SUV) Sorento, and large SUV Mohave. Due to uncertain development of successor models for the K3 and Mohave, there have been persistent rumors of discontinuation both inside and outside the company. The labor union has consistently demanded the allocation of new models, citing employment concerns for frontline production workers.

Kia's Brisa Pickup released in the 1970s

Pickup trucks were mainly sold in North America in the past but have recently seen growing demand domestically for camping and car camping (cha-bak). If Kia launches a pickup truck in the market, it will be the first time in over 40 years since the Brisa pickup, which was released in the 1970s and discontinued in 1981. Its affiliate Hyundai Motor has developed the Santa Cruz pickup truck targeting North American demand, producing it in the U.S. and selling it locally.

Among domestic automakers, only SsangYong Motor directly manufactures and sells pickup trucks. The Chevrolet pickup trucks sold by Korea GM are imported units made in the U.S. There are no electric pickup trucks yet in Korea. Even overseas, only Ford and GM sell pickup trucks in the U.S., where demand is high.

Hyundai Pickup Truck Santa Cruz. Manufactured at a U.S. factory with performance similar to the Tucson and sold only locally.

Kia has openly stated that it is developing pickup trucks based on SUVs such as the Soul and Mohave. Kia President Song Ho-sung also revealed at last year’s CEO Investor Day that an electric pickup truck is under development. However, production was initially planned in the U.S., where pickup truck demand is high.

South Korea and the U.S. have a free trade agreement (FTA) allowing most goods to be traded tariff-free, but due to U.S. requests, a 25% tariff applies to pickup trucks exported from Korea until 2041. While U.S. demand will be met by Kia’s U.S. plant, the pickup trucks produced at Hwaseong will target domestic demand. Depending on market conditions, there is also a possibility of exporting to regions other than the U.S.

The electric pickup truck F-150 Lightning released by Ford in the United States last year. Pickup trucks are highly demanded in the North American market, with pickup trucks occupying the top ranks of annual bestsellers.

Alongside pickup trucks, Kia’s labor and management have finalized an agreement to begin new facility construction targeting mass production of PBV electric vehicles in July 2025. PBVs, used for specific purposes including goods delivery, are a key focus area for Kia’s mid- to long-term growth strategy. Initially, facilities will be set up for an annual capacity of around 50,000 units, with plans to expand to 100,000 units and later 170,000 units depending on market demand. In the mid- to long-term, production capacity will be increased to over 200,000 units annually. The new PBV plant will utilize existing transmission and body plant sites.

PBVs target the freight transport market previously dominated by small commercial vehicles like Porter and Bongo. Derived models are segmented according to specific uses such as vehicle dispatch and delivery. Models include the basic PBV, long models with extended front and rear lengths, long-high models, and chassis cab versions capable of large-scale loading.

Along with pickup trucks and PBVs, labor and management have agreed to produce electric vehicle power electronics (PE) directly at the Hwaseong plant. In internal combustion engine vehicles, powertrains such as engines and transmissions are core components developed and produced by automakers. For electrified vehicles, transmissions are unnecessary and motors replace engines, but there has been disagreement within automakers over who should produce PE components like motors, inverters, and reducers. Specific workforce allocation will be determined through future labor-management consultations.