South Korean automaker Kia shared an update on its future strategies and financial targets at its CEO Investor Day in Seoul, Korea.
Based on its achievements in the years since the announcement of mid-to-long-term business initiatives, Kia is focusing on updating its 2030 strategy announced last year and further strengthening its business strategy in response to uncertainties across the global mobility industry landscape.
During the event, Kia updated its mid-to-long-term business strategy with a focus on electrification, and its PBV business. Kia reiterated its 2030 annual sales target of 4.3 million units, including 1.6 million units of electric vehicles (EVs). The 2030 4.3 million annual sales target is 34.4 percent higher than the brand’s 2024 annual goal of 3.2 million units.
The company also plans to become a leading EV brand by selling a higher percentage of electrified models among its total sales, including hybrid electric vehicles (HEV), plug-in hybrid (PHEV), and battery EVs, projecting electrified model sales of 2.48 million units annually or 58 percent of Kia’s total sales in 2030.
“Following our successful brand relaunch in 2021, Kia is enhancing its global business strategy to further the establishment of an innovative EV line-up and accelerate the company’s transition to a sustainable mobility solutions provider,” said Ho Sung Song, Kia President and CEO. “By responding effectively to changes in the mobility market and efficiently implementing mid-to-long-term strategies, Kia is strengthening its brand commitment to the wellbeing of customers, communities, the global society, and the environment.”
While the long-term EV demand for 2030 is expected to remain unchanged, the pace of demand growth may prove uneven in the near term. Factors such as a weaker global economic growth, reduction of EV subsidies, and slower adaption of charging infrastructure might affect EV demand.
To respond agilely to changes in the market environment, Kia will secure maximum flexibility in its line-up operation. Kia plans to strengthen its hybrid electric vehicle (HEV) line-up from six models in 2024 to nine models by 2028, with HEV powertrain options offered for most of the brand’s major models.
In response to EV market changes, Kia will launch six EV models by 2026, starting with the upcoming EV3 in 2024, followed by EV2, EV4, and EV5 in major markets, including the U.S., Europe, and South Korea. In emerging markets, the company will deploy two region-specified EVs, such as Carens EV for the Indian market.
The brand also plans to produce both EVs and internal combustion engine (ICE) vehicles at 13 factories globally, including seven in South Korea and six overseas. In addition, two EV-dedicated plants will be operated in South Korea.
EV Strategy: Expanding to 15 EVs in 2027, targeting 1.6 million EV sales in 2030
Kia’s mid-to-long-term business strategy retains a focus on electrification and PBV growth, backed by a total of 15 EV models by 2027. This represents the addition of one more EV model to the 14 models previously committed to by the brand. This number includes new EVs – EV2, EV3, EV4 and EV5, and two PBVs – PV5 and PV7.
In addition, to improve battery performance and secure cost competitiveness, Kia plans to focus on upgrading its technology by enhancing the energy density and range offering of nickel-cobalt-manganese (NCM) batteries. The brand will also provide various battery options, including lithium iron phosphate (LFP) batteries, to meet the diverse needs of global markets.
Kia is also pushing a charging infrastructure expansion strategy around the globe. The brand plans to build more than 5,400 E-pit branded stations by 2030 in South Korea, with 482 currently installed. Kia is also targeting to utilize more than 30,000 charging stations in North America by 2030 as part of the IONNA joint venture. In Europe, the company will build more than 17,000 charging stations through its partnership with IONITY.
Product direction to achieve sales goals
Kia presents four directions of its products – connectivity, autonomous driving, performance, and design.
Kia plans to gradually expand new connectivity-based services, such as OTA, Feature on Demand (FoD), and in-car payment, to emerging markets. In addition, Kia plans to continue to improve its connectivity technologies based on the latest 5G network, such as advanced OTA systems and fuel efficiency driving using artificial intelligence (AI).
The company will also focus heavily on the expansion of software-defined vehicles (SDVs), with the development of an integrated platform that can maximize the synergy between system hardware and software and the combination of high-performance vehicle computers with high-speed connectivity and the latest artificial intelligence technologies to improve convenience and safety.
Kia is upgrading its highway driving assist (HDA) technology and plans to expand the system’s scope to autonomous driving in the cities by 2026 through the continuous development of high-resolution precision sensors and autonomous driving software.
Kia also plans to continue releasing GT trim variants of its EV models, including the EV9 GT, in January 2025. The brand plans to maximize the convenience and performance of its vehicles through OTA capability. This capability applies some of the latest software technologies, such as next-generation vehicle architecture, high-performance central computers, integrated operating systems, and controller-integrated software.
