[Kia EV Day] Song Hoseong "PBV, Tremendous Growth Engine in Europe... No Change in Electrification Strategy"

Targeting 20% Market Share in the European Electric Commercial Vehicle Sector
"PBVs Will Be an Ideal Model for Uber"

Song Hoseong, CEO of Kia, stated, "Purpose-built vehicles (PBVs) will be a tremendous growth engine driving Kia's expansion in Europe." Regarding the 25% tariff on automobiles announced by the U.S. for April 2, he mentioned that various response scenarios are being prepared.

Although the completed vehicle industry is shifting its strategy to hybrids due to the electric vehicle 'Chasm' (temporary demand slump), CEO Song emphasized that Kia will not change its electrification direction. Kia is confident in its flexible response system, which is more adaptable than any other company, allowing it to adjust speed in response to sluggish demand.

At a press conference held after the '2025 Kia EV Day' event at the Tarragona Arena in Spain on the 24th (local time), CEO Song said, "I believe the trend for electric vehicles will continue in Europe," adding, "We plan to capture a 20% market share in the electric commercial vehicle market through PBVs."

Song Hoseong, CEO of Kia (right), is speaking at the 'Kia EV Day' press conference held on the 24th (local time) at the Tarragona Arena in Spain. On the left is Kim Sangdae, Vice President of Kia PBV Business Division. (Photo by Kia)

PBVs are vehicles whose interior spaces can be converted for multiple uses depending on the purpose, a new concept of commercial vehicles first introduced globally by Kia. On this day, Kia unveiled its first PBV, the PV5.

He explained, "The global commercial vehicle market currently stands at 3.7 million units and is expected to grow to 4 million units by 2030," adding, "Among these, electric vehicles currently account for only about 220,000 units but are expected to rapidly grow to 1.19 million units by 2030."

He continued, "Since these vehicles are operated by companies, electrification related to carbon neutrality will proceed rapidly," emphasizing, "Although we have not entered the commercial vehicle market until now, we will enter by creating an eco-friendly process through PV5 that reduces vehicle modification costs and social costs."

CEO Song introduced, "Since announcing PBVs, we have been in discussions with over 100 global companies." A representative example is the global mobility company Uber.

Song Ho-sung, CEO of Kia (right), is delivering the keynote presentation at the 'Kia EV Day' held at the Tarragona Arena in Spain on the 24th (local time). (Provided by Kia)

Kia expects PBVs to be suitable models for Uber, which is seeking carbon-neutral transformation through electrification. In the autonomous driving field, which Uber is interested in, cooperation can be explored through the linkage of Hyundai Motor Group's autonomous driving technology and PBVs.

In particular, the PV5, which can accommodate seven passengers, has the advantage of allowing Uber drivers to earn additional income due to the seven-seat capacity. Besides this, Kia is also developing business models with logistics and small-to-medium-sized business operators such as DHL, Coupang, and CJ Logistics.

Regarding U.S. tariffs, CEO Song said, "We are currently preparing various scenarios," but pointed out, "What is important is how quickly we respond once the tariffs are confirmed."

He also stated that despite predictions of a slowdown in electric vehicle demand, Kia will not change its electrification strategy. He said, "According to Market Intelligence's forecast for electric vehicle demand in 2030 released last month, there is an 18% decrease compared to the forecast made in June last year, but it still represents a large market of 29 million units," adding, "The trend for electric vehicles may be delayed by 2 to 3 years in speed, but it is fundamentally the direction we must follow."

Song Ho-sung, CEO of Kia (third from the left in the top row), is speaking at the 'Kia EV Day' press conference held at the Tarragona Arena in Spain on the 24th (local time). (Provided by Kia)

He added, "Even if the electric vehicle era is delayed, Kia can operate flexible factories," explaining, "We did not invest in dedicated electric vehicle factories from the start, and we have a mixed production system that integrates electric vehicles into existing factories."

Furthermore, CEO Song explained that instead of additional investment in the highly competitive European electric vehicle market, Kia will maximize the utilization of the 350,000-unit capacity of its currently operating Slovakia plant. He said, "From this year, EV models will be produced at the Slovakia plant," adding, "Depending on the speed of EV sales in Europe, the priority is to convert the current internal combustion engine-focused system to an EV system."

Regarding the Chinese electric vehicle company BYD, which recently entered the domestic market, he said, "We believe that when BYD's Atto 3 arrives, we can respond with EV3 and EV4, so we are not overly concerned," adding, "Atto 3 is expected to mainly enter the rental car sector, so competition may intensify somewhat."