Kia increases investment in electric vehicles, sets sales targets

that announced increased investment in electric vehicles (EVs) and now plans to sell one million units a year by 2026, increasing to 1.6 million units by 2030.

This is an increase of 25% and 33% respectively compared to the targets announced last year.

That means the South Korean automaker expects electric vehicles to make up 37% of its total sales, as it aims to produce a total of 4.3 million vehicles by 2030 – an increase of 10.3 % against the target announced last year.

Including hybrid and plug-in hybrid vehicles, Kia expects electric vehicles to account for 2.38 million units by 2030, or 55% of production.

This year, the company aims to capture 4% of the global auto market and sell a total of 3.2 million units.

The company released revised figures as part of its annual CEO Investment Day.

Kia now plans to build 15 EVs by 2027, one more than it has previously advertised, and all will be available as hot GTs.

This includes the upcoming, recent EV5 preview in concept form. It is set to launch in China in the fourth quarter of this year.

This is one of a number of new or updated models coming out this year, including EV9a newly built Mexican Rio (which won’t come here), the tiny Ray EV and five “improved” models.

These updated models are expected to include recent tracked refreshes of the Picanto, Carnival And Sorento.

A medium-sized purpose-built vehicle (PBV) to be released in 2025 will support a variety of body sizes and styles on a skateboard platform.

Kia will expand its PBV product line to offer a wide range of vehicles from small to large including robotic taxis, large vehicles for public transit or mobile offices, freight vehicles and small food.

The new EV5 will be among the small and medium-sized EVs that Kia will manufacture in China.

The company will also produce small and medium-sized electric vehicles in Europe, and will start producing electric vehicles in the US in 2024.

Kia will produce a small electric vehicle in India from 2025, which has been optimized for both the subcontinent and other emerging markets.

It also doesn’t neglect its homeland, with South Korea serving as a global hub for electric vehicle research, development and production.

It will also build its first dedicated EV factory there in 2024 and convert the Gwangmyeong plant’s production line to EV production with two models set to launch next year.

The company claims the plant will use cutting-edge technologies such as “3D virtual reality workflows” and automated, unmanned facilities.

Its vehicles will also receive new technology, with the EV9 debuting a new conditional Level 3 “hands-free” autonomous driving feature called Highway Drive Pilot.

A second-generation version of this technology, scheduled to launch in 2026, will assist with conditional “unobservable” driving, although “partially unobserved functionality” will be available. from 2024. Kia will continue to improve this technology with online updates.

All new models launched after 2025 will have connected car technology and support over-the-air updates.

Kia is investing 32 trillion KRW ($36 billion) over the next five years through 2027, 45% of which will be dedicated to future business areas.

The company is continuing to focus on profitable models and higher-end versions to strengthen its image and profits, and wants to record total sales of 97.6 trillion won ($111 billion). dollars) this year, plus 9.3 trillion won ($10.5 billion) in operating profit. and an operating margin of 9.5%.

Over the next 5 years, it is also working to carry out a share buyback, buying up to 0.5 trillion KRW (567 million Australian dollars) worth of shares a year and canceling at least 50% of the shares. acquired.

It aims to reduce the cost of batteries, electric motors and integrated charging systems. Its goal is to reduce battery costs by 25% by 2026 from 2018 prices and by 70% for motors and charging systems.

By 2030, Kia wants to achieve total sales of 160 trillion won ($181 billion), or an 84% increase from 2022.

It also wants to record an operating profit of 16 trillion won (AU$18 billion) in 2030, up 122%, and record an operating profit margin of 10%, up 1.6 percentage points year-on-year. last.

It expects EVs’ contribution to profits to grow from 5% last year to 32% in 2026 and 53% in 2030.

Kia has reduced its carbon footprint by 4.5% in 2022 compared to 2019 and is targeting net zero in all stages of the value chain, as well as customer vehicle use by the end of the year. year 2045.

It plans to fully transition to renewable energy across workplaces globally by 2040 and achieve 100% electrification in South Korea, the US, Europe and China that same year.

It is also partnering with the nonprofit Ocean Cleanup to collect plastic waste from the ocean and reuse it for vehicle parts from 2024 and for vehicle parts from 2026. recycled plastic application rate to increase to 20% by 2030.

Other goals from Kia’s expansion plans include a goal to partner with the broader Hyundai Motor Group on advanced robotics and air mobility, and enhance the personalized services it offers. provided to customers.