Kia "Sequential Launch of EV3, 4, 5 Starting This Hallyeon... Will Ensure Unconditional Success" (Comprehensive)

Kia 2023 4th Quarter Earnings Conference Call

Kia, which recorded its highest-ever performance last year, expressed confidence in expanding sales focused on eco-friendly vehicles this year as well. Starting with the launch of the EV3 in the first half of this year, Kia will sequentially introduce competitively priced compact and subcompact electric vehicles such as the EV4 and EV5 to the global market.

Joo Woo-jung, Vice President and Head of Kia’s Finance Division, said at the '2023 Q4 Earnings Conference Call' held on the 25th, "The EV 3, 4, and 5, which are volume electric vehicle models, will be launched consecutively starting from June this year," adding confidently, "We will absolutely make these three models successful."

Amid a global slowdown in electric vehicle demand, Kia emphasized securing cost competitiveness through technology-based differentiation to strengthen its position. Vice President Joo stated, "We are striving to offer prices that can compete with hybrids and internal combustion engine vehicles from a total cost of ownership (TCO) perspective."

Kia electric vehicle lineup unveiled at the '2023 Kia EV Day' last October / Photo by Jin-Hyung Kang aymsdream@

Kia is preparing to launch the compact electric sports utility vehicle (SUV) EV3 by the end of the first half of this year. In early 2025, the company will release the compact electric sedan EV4. Regarding the EV5, which was introduced in China last year, Kia plans to launch a higher trim this year to actively expand sales of dedicated EV models. Vice President Joo said, "Although there are signs of a slowdown in EV market demand, overall, we are receiving requests to expand supply by region," and added, "Unless there are major variables, we expect to proceed confidently in terms of sales and profitability."

Kia also announced plans to steadily increase sales of another eco-friendly vehicle type, hybrids (HEV). Last year, Kia sold approximately 600,000 eco-friendly vehicles globally. The sales breakdown was about 310,000 HEVs, 200,000 EVs, and 90,000 PHEVs. Vice President Joo said, "We plan to increase EV volume by more than 50%," and added, "Demand for HEVs is strengthening across domestic, North American, and European markets, and we expect a demand increase of over 20-25% this year as well."

HEV models of Kia’s major vehicles such as the Sorento and Sportage are gaining popularity in the global market. Last year, Kia launched the Carnival HEV, and this year, it is promoting the hybridization of other models including the Seltos.

Finally, Kia announced its business plan for this year, setting wholesale sales at 3.2 million units, revenue at 101 trillion KRW, and an operating profit margin of 11.9%. Vice President Joo said, "We have set a target of 1 trillion KRW in monthly operating profit," and added, "We will do our utmost to maintain a high-profit structure that secures both profitability and market share."