"‘Kia transformation’ takes the company toward a broader business portfolio to redefine the entire mobility ecosystem."
Kia announced, during the 2021 Kia CEO Investor Day, the roadmap for transformation of the company towards electrification and mobility solutions.
The company has updated its 'Plan S', which consists of three core pillars: EV transition, purpose-built vehicle (PBV) business and various mobility services.
"‘Kia transformation’ takes the company toward a broader business portfolio to redefine the entire mobility ecosystem, starting with the transition from internal combustion engine (ICE) to electrification."
The general plan for BEVs, which is the most important part for us, envisions 11 all-electric cars on the market by the end of 2026. Seven of those BEVs will be dedicated models, based on the Hyundai Motor Group's E-GMP platform.
- E-GMP-based dedicated BEVs: 7
- other BEVs (existing ICE derivatives): 4
- Total BEVs: 11
including: 1 in 2020, 1 new in 2021, 1 new in 2022, 3 new in 2023, 2 new in 2024 and 3 new in 2025-2026
As we can see, more than half (6 out of 11) will be in crossover/SUV segment (Hyundai/Kia describes them as RV - recreational vehicles):
Kia would like to become one of the top all-electric car manufacturers in the future, although the planned volume is not that high to aim at the top positions:
- 2021: about 104,000 BEVs (about 5.5% of the expected total volume)
- 2022: about 162,000 BEVs
- 2026: about 579,000 BEVs
- 2030: about 877,000 BEVs
In total, sales of the "eco-friendly" cars will be 1.6 million annually by 2030, while PBVs will be at 1 million.
"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 units. As part of this, Kia aims to grow EV sales to 880,000 units in 2030 and become a top global seller."
Another major goal is to increase profitability, especially for electric cars (to match ICE). The key in that matter will be the E-GMP platform.
"With increased profitability for new EV models, Kia made upward adjustments to its operating profit margin targets from the figures initially announced last year. Kia now targets 5.4 percent operating profit margin in 2021, and 7,9 percent operating profit margin in 2025."
"It is expected that Kia will enter a new level of EV profitability with the release of CV later this year. The company expects to achieve profitability at the level of existing ICE models in 2025. The company also predicts that EV cost improvement will be continuously strengthened through economies of scale due to the expansion of EV volume and the reduction of material cost through R&D investment."
Purpose-built vehicle (PBV)
The first purpose-built vehicle (PBV) to be unveiled and launched in 2022 (future models to follow "according to market needs"). The plan is to offer a variety of specialised vehicles based on its PBV-dedicated skateboard platforms.
"Kia plans to further expand its PBV business through open innovation by cooperating with other companies to develop micro/large board platforms for unmanned delivery and e-commerce sectors. The company will also advance its own highly scalable small board platforms and technologies since the company expects market demand for these services to increase globally."
Kia is developing various mobility solutions, from general car-sharing, car usership to subscription-based business-to-government and business-to-business car-sharing services.
"In the business-to-government and business-to-business, Kia will launch an EV-based service that combines subscription and car-sharing. Under this new mobility service concept, vehicles will be used for business on weekdays and rented by individuals on the weekends."