Having previously announced an annual sales target of 4.3 million units by 2030, with electrified models accounting for 58% of its total range, Kia Motors’ confidence in its products – which have been winning many awards – has led to the Korean carmaker increasing its annual EV sales targets to 1.15 million units in 2027 and 1.6 million in 2030.
Kia plans to increase sales of electrified models (which includes hybrids) to 2.48 million units, representing 58% of sales, in 2030, with 882,000 units to be HEVs and PHEVs (hybrid and plug-in hybrid electric vehicles). This is a 3-percentage point increase from last year’s target and strengthens its strategy to change the sales structure with an even greater focus on electrified line-ups.
As demand for HEVs is expected to continue, Kia plans to develop next-generation hybrid powertrains with improved performance, torque, and fuel efficiency. It will apply these more advanced systems to various vehicle segments, and expand flexible production capabilities for both HEV and also combustion engine models.
The company plans to continue its growth momentum by building a full line-up of EVs in key markets, enhancing product competitiveness and creating new demand using PBVs (Purpose-Built Vehicles). In addition, it aims to respond to increasing demand by diversifying manufacturing bases.
EV Strategy for this decade
The 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 means adding 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).
While the long-term EV demand for 2030 is expected to remain unchanged, the pace of demand growth may, however, prove uneven in the near-term. Factors such as a weaker global economic growth, reduction of EV subsidies in various countries, and slower development of charging infrastructure might affect EV demand.
Responding quickly to market changes
To have a quick response to changes in the market environment, Kia will create maximum flexibility in its line-up operation. It plans to strengthen its HEV line-up from 6 models in 2024 to 9 models over 4 years, with HEV powertrain options offered for most of the brand’s major models.
In response to EV market changes, Kia will launch 6 EV models by 2026, starting with the upcoming EV3 in 2024, followed by EV2, EV4, and EV5 in major markets. In emerging markets, the company will offer region-specific EVs, such as Carens EV for the Indian market.
The company also plans to produce its EVs and other vehicles at 13 factories globally, with2 EV-dedicated plants operating in South Korea.
Challenging Chinese brands
Chinese brands are steadily entering many markets where Kia has been established, creating new and aggressive competition. To counter this rise of Chinese competitor brands, the carmaker has a multi-strand policy of strengthening its product competitiveness, establishing a global service and parts operation system, entering new PBV markets, and utilizing its factories in China for other emerging markets.
“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 & 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,” he added.