[CES 2024] Kia President Song Hoseong: "PV5 to Achieve Price Competitiveness Around 45 Million Won"

"Targeting 20% Global Top-Tier Share for Electric PBVs by 2030"

Song Hoseong, CEO (President) of Kia, announced that the price of PV5, the brand's first PBV (Purpose-Built Vehicle) scheduled for launch in July next year, will be competitively set at around $35,000 (approximately 45 million KRW).

On the 8th (local time), Song made this statement at the CES 2024 media event held in Las Vegas, USA. The PBV market, which falls under commercial vehicles, places particular importance on price competitiveness. Kia noted that existing commercial vehicles require significant costs for purchase and modification. This is because the vehicle’s interior seats or some parts must be removed and rebuilt. By saving on these modification costs alone, cost reduction is sufficiently achievable.

Song said, "We are considering not only individual business owners but also the B2B market," adding, "We are targeting a starting price of about $35,000 for the mid-sized PBV, PV5. By avoiding the considerable social loss caused by modifications, we can eliminate intermediate costs and secure a competitive price."

Kia President Song Ho-sung is presenting Kia's PBV vision and strategy at the CES 2024 media conference held on the 8th (local time) at the Mandalay Bay Convention Center in Las Vegas, USA.
[Photo by Kia]

He also revealed a goal to become a global top-tier player in the electric PBV (Purpose-Built Vehicle) market within the next six years. The plan is to sell 300,000 units annually by 2030 and increase the global electric Light Commercial Vehicle (LCV) market share to 20%.

Kia estimates the size of the Light Commercial Vehicle (LCV) market to be 3.5 million units by 2030. Electric vehicles are expected to exceed 1.5 million units, and among them, Kia has set an electric PBV sales target of 300,000 units. This corresponds to a 20% market share in the electric PBV market.

Song stated, "In the current slow electrification of the commercial vehicle market, we believe there is an opportunity for us by applying the innovation of 'customized commercial vehicles,'" adding, "We will respond to customer demand with a flexible production method by utilizing the PBV-dedicated factory being built in Hwaseong."

He continued, "Kia is a brand that has been manufacturing military vehicles as modified vehicles for over 30 years," emphasizing, "We will create the best innovative service business that supports even the software aspect by reinforcing the weaknesses of current commercial vehicles that require separate modifications."