Baek Byung-yeul is a journalist at The Korea Times focused on cultural content, including films and cultural events in South Korea. You can contact him at baekby@koreatimes.co.kr to share your insights.
Kia to transform itself into EV carmaker
Kia CEO Song Ho-sung speaks during the company's CEO Investor Day event, Tuesday. / Courtesy of Kia
By Baek Byung-yeul
By Baek Byung-yeul
Kia has vowed to improve its electric vehicle (EV) sales, and will release 11 EV models by 2026, while transforming itself into a total mobility company, the Hyundai Motor Group affiliate said Tuesday.
The carmaker held a CEO Investor Day event online and unveiled its future vision focusing on EVs and mobility.
The company recently unveiled its new logo, removing “Motors” from its corporate name to distance itself from combustion engines and stress its transformation into a mobility company.
Kia CEO Song Ho-sung said the change in its corporate name shows “Kia's commitment to total transformation.”
“Kia Motors will pass into history. We will greet the coming mobility era with our new name Kia, and Kia will go beyond the manufacturing and sales-driven business to solidify itself as a brand offering innovative mobility experiences to customers,” he said.
Under its new vision, Kia introduced what he called the “Plan S” strategy, which centers on the transition to EVs, strengthening the purpose-built vehicle business and expanding future mobility services. To achieve that goal, Kia will invest 29 trillion won ($26 billion) by 2025.
“By 2030, eco-friendly vehicles such as EVs, HEVs and PHEVs will make up 40 percent of all sales for Kia, with an annual sales target of 1.6 million. As part of this, Kia aims to boost EV sales to 880,000 in 2030 and become a top global seller,” the company said. HEV stands for hybrid electric vehicles, while PHEV stands for plug-in hybrid electric vehicles.
The carmaker also set a 2021 goal of achieving a 3.7 percent share in the global automotive market. To accomplish that goal, Kia has to sell 2.92 million cars, up 12 percent year-on-year.
Kia said it will launch various new models to achieve that goal. The new K7 sedan will hit showrooms in the first quarter, while a redesigned Sportage SUV will be released in the second quarter. The company's new EV, codenamed CV, will be introduced in the third quarter.
In the U.S. market, which accounts for the largest portion of Kia's sales and profits, the company plans to sell 640,000 cars, up 9.2 percent year-on-year, to secure a 4.1 percent market share. The company hopes sales volume will increase thanks to the rising popularity of its SUV models including the Telluride.
In Europe, which has been severely hit by the COVID-19 pandemic, Kia will focus on selling EVs including the CV to continue to meet the CO2-emission requirements there. “Last year, Kia was able to meet CO2-emission regulations by boosting the green car contribution to sales to 26 percent. In 2021, we expect it to take up 30 percent of sales to satisfy regulations,” the company said.