Kia Corporation (Kia) today provided an update on its future strategies through the Kia CEO Investor Day event held in Seoul, Korea.

Kia has updated its mid- to long-term business strategy with a focus on electrification. Kia’s updated 2030 annual sales target is 4.3 million units, of which 2.38 million units will be electrified vehicles. The financial targets have also been increased to KRW 160 trillion in gross revenue, 16 trillion won in operating profit and 10 per cent in operating profit margin.

Kia first unveiled its mid- to long-term strategy entitled ‘Plan S’ in 2020, which focuses on a pre-emptive transformation towards an EV-focused business and providing customised mobility solutions. Since then, Kia has held a CEO Investor Day every year to present updates on the company’s future vision and goals.

During the 2023 CEO Investor Day, Kia announced updated goals and specific details of its business strategy. Kia’s 2030 global sales target of 4.3 million units is 34.4 per cent higher than its 2023 annual sales target of 3.2 million units. It also plans to become a leading EV brand by raising the proportion of electrified car sales to 55 per cent (2.38 million units) in 2030. This is a 7.5 per cent (300,000 units) increase from the 2030 target announced in 2022, while the global sales target for electrified vehicles has increased by 15.5 per cent (320,000 units).

“In 2021, Kia went through a full-scale transformation of its corporate name, logo, product and design, as well as corporate strategy. As a result, our brand value has improved significantly, helping us to win a number of 'Car of the Year' awards in key markets,” said Kia President and CEO Ho Sung Song. “In order to become a Sustainable Mobility Solutions Provider, Kia needs to continue its efforts to strengthen Kia brand identity and establish an innovative and customer-centric business model.”

Key within the refreshed sales targets, Kia increased its 2026 annual EV sales target to one million units and 2030 EV sales target to 1.6 million units annually, representing a 25 per cent increase and 33 per cent increase, respectively, from goals announced a year earlier.

The update is based on Kia’s confidence in its award-winning products. The EV6 won the '2022 European Car of the Year' and '2023 North American Utility Vehicle of the Year.’ Kia now plans to build an EV line-up of 15 models by 2027, including the flagship model EV9 revealed recently. This is one more than the ‘14 models by 2027’ announced a year earlier.

It will continue to implement new technologies on its product and apply connectivity features to all new models released after 2025, allowing customers to update and optimise vehicle performance through over the air (OTA) updates. Regarding autonomous driving technology, the EV9 will feature HDP (Highway Drive Pilot), a conditional level three autonomous driving technology, which allows the driver to operate the vehicle "hands-off" under specific conditions. In 2026, Kia plans to introduce HDP2 technology that will support "eyes-off" driving under certain conditions.

The 2023 CEO Investor Day event also provided a detailed blueprint for the purpose-built vehicle (PBV) business. The company plans to launch a mid-size dedicated PBV model in 2025 at a dedicated PBV production facility in Hwaseong, and will gradually build a full line-up of PBVs, ranging from small to large, including a robo-taxi with autonomous driving technology.

In addition, the company plans to commercialise data and software-based solutions to introduce customised products and services for diverse needs of customers, and to develop mobility services in connection with Hyundai Motor Group’s Advanced Air Mobility (AAM) and robotics businesses.

Establishing a tailored business structure for PBV

Kia has started its Purpose-Built Vehicle (PBV) business with an understanding that PBV business will serve as one of the company’s key future businesses. Kia is developing PBV business with a focus on the needs of customers and is involving them from the development stage of PBV in order to offer customised PBV solutions. For instance, Kia last year unveiled to potential customers a dedicated PBV in its development stage due for mass production in 2025, in order to collect feedback.

In terms of production, the company is building a PBV factory in Hwaseong. The dedicated PBV, to be unveiled in 2025, will be developed as medium-sized PBV for use in wide variety of businesses, and has a structure in which various types of bodies can be placed on a flat skateboard-type platform, allowing the size and shape to be adjusted according to the purpose and needs.

In line with the expansion of the PBV market, Kia aims to gradually expand its PBV line-up to include a PBV robotaxi with autonomous driving; a small PBV optimised for delivering goods or food; and a large PBV that can replace public transportation or be used as a mobile office.

Future technology focused product strategy and development system for SDV

Kia has identified connectivity services; autonomous driving technology; performance; and design as its four key product attributes to lead the future mobility market and develop differentiated products.

Following the plan announced last year, Kia will also build a connected car data cloud and apply connectivity features to all newly launched vehicles from 2025. Its wide array of OTA services and additional features available features available at the Kia Connect Store will help customers to choose features tailored to their lifestyle and keep them up to date at all times.

Kia's autonomous driving technology AutoMode will also be enhanced starting with the EV9. HDP, a conditional level three autonomous driving technology that does not require human steering wheel control for certain road sections, such as highways, will be applied to EV9 for the first time this year.

By 2024, the company plans to implement partial eye-off functions under certain conditions by enhancing the feature through OTA updates and raise the maximum speed of autonomous driving and improve road recognition rates. In 2026, Kia plans to further strengthen the autonomous driving with HDP2 technology that utilises high precision navigation.

In addition, Kia plans to focus its capabilities on securing high performance and differentiated design as key elements of product competitiveness. The high-performance GT trim will be developed not only for the EV9 but also for all future EV models.

Regarding design, Kia will implement user-friendly design based on philosophy of “Opposites United”, while actively adopting ESG management approaches, such as recycling and use of non-toxic materials and biomaterials. For instance, 34 kilograms of eco-friendly materials have also been applied to various parts of the EV9, and the proportion of recycled plastic applications will be increased to 20 per cent by 2030.

To support and strengthen these four core product strategies, the vehicle development system will be restructured for SDV. The goal is to develop software that has integrated control over various systems and hardware that accelerates the vehicle development process and lower the associated costs.

Furthermore, Kia plans to strengthen personalisation services provided to customers, reduce initial purchase and operation costs of vehicles, ensuring both high product quality and residual values

For full release please visit https://www.kianewscenter.com/news/all/2023-ceo-investor-day---kia-accelerates-ev-transition-with-target-of-1.6-million-ev-sales-by-2030/s/4432e086-3707-4026-ac57-94855cfc9a6a

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