Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
CES 2024 Kia bets big on 'platform beyond vehicle' vision
Kia President and CEO Song Ho-sung, center, poses with company executives after announcing their vision for the platform business, on the sidelines of this year's Consumer Electronics Show (CES) at Mandalay Bay Convention Center in Las Vegas, the United States, Monday (local time). Courtesy of Kia
By Lee Min-hyung
LAS VEGAS — Kia has displayed its ambitious vision to expand into what it calls a "platform beyond vehicle" (PBV) business, a type of modular car designed for specific demands made by individuals or small business owners, the company said on the sidelines of this year’s Consumer Electronics Show (CES).
PBV refers to a customized electric vehicle (EV) that features a flexible chassis, enabling customers to change the upper body of a car with a different module when they want to change the purpose of use.
The automaker presented its corporate vision of mass-producing 300,000 PBVs annually by 2030, targeting the diverse lifestyles of customers around the world. PBVs can also be manufactured more flexibly than conventional vehicles, so the company is expected to cut its production costs and generate more stable revenue.
“Conventional vehicle factories are considered inefficient compared to the ones for PBVs, as the latter has simplified the manufacturing process by introducing a digital conveyor belt and cell production system,” Kia President and CEO Song Ho-sung told reporters during a press conference. This is much more flexible than traditional factories, which had to rely on a conveyor belt for each phase of manufacturing, which is not fit for producing a range of vehicle models or adding a new manufacturing process, according to him.
The automaker talked up its Easy Swap technology, which maximizes the flexibility of the vehicle because a single-vehicle chassis is used to fulfill multiple mobility needs. For instance, its PBV can operate as a taxi during the day, and then be transformed into a delivery van at night. It can also be used for recreational purposes on weekends.
Kia President and CEO Song Ho-sung speaks during a press conference on the sidelines of the CES 2024 in Las Vegas, Monday (local time). Courtesy of Kia
For visitors to the CES 2024, Kia exhibited a mid-sized first concept PBV — the PV5. The company also showcased concept cars for its PV1 and PV7 models. The PV5 will be available for sale from July 2025, and Kia is also scheduled to diversify its lineup according to customer demand. The price for the PV5 will start at around $35,000 (46 million won), according to the automaker.
The Kia chief expressed his confidence in the new business's ability to generate a stable cash flow by gradually widening its market share.
“We will achieve a PBV market share of 20 percent by 2035 and all the vehicles will be powered by electricity,” Song said. “Kia’s PBV business represents our vision of going beyond the traditional concept of automobiles, and our inroads into the new business will fulfill unmet needs from a diverse range of customers,” he said.