Kia revises its strategy upwards: more sales and more electrics

Kia Corporation announced during Investor Day 2023 that an update of its Plan S strategic plan unveiled in 2020 was held in Seoul.
A more incisive focus on electrification and sales growth stand out.
The global target of annual registrations by 2030 has been raised to 4.3 million units, with a target 34.4% higher than that indicated for 2023 (3.2 million).
Financial targets were also revised upwards to 160 trillion won in gross revenues, corresponding to 115.1 billion euros, 16 trillion won in profit (11.5 billion euros) and an operating margin of 10%. .
The will of the South Korean manufacturer to become the leading brand on the electric vehicle market was also confirmed by increasing the percentage of sales of electrified models to 55% (2.38 million units) in 2030. This is an increase of 7.5 % (300,000 units) over the 2030 target announced in 2022, while global sales of electrified vehicles are expected to increase by 15.5% (320,000 units).
“In 2021 Kia embarked on a radical transformation that affected the name, logo, product and design, as well as the entire corporate strategy – said Ho Sung Song, president and CEO of Kia – As a result, the value of our brand has improved significantly, helping us win multiple awards such as Car of the Year in strategic markets.”
“To become a supplier of sustainable mobility solutions – reiterated Ho Sung Song – Kia must continue on this path to strengthen the brand identity and consolidate an innovative and customer-focused business model”. In this context, the fact that the corporate strategy envisages extending new technologies and connectivity functions to the entire range from 2025, giving customers the possibility to update and optimize vehicle performance over the air (Ota), is of absolute importance.
The expected acceleration of the transition towards EVs will be based – it was said at Investor Day – on the expansion of the range with the debut of 15 electric models (i.e. one more than what was communicated last year) by 2027, with the goal of selling 1.6 million EVs in 2030. With the expansion of the electric range, Kia intends to satisfy the growing market demand for this type of car. Building on a goal of 258,000 units set for this year, the company has set itself the ambitious goal of reaching 1,005,000 electric vehicles in 2026 and 1.6 million in 2030, an increase of 400,000 units (33%). compared to the initial target announced in 2022 of 1.2 million units.
Kia is structuring itself to produce the strategic models locally for each market. In Europe, for example, the company plans to produce small and medium-sized electric vehicles while In the United States it will introduce BEV of key segments starting from 2024 and in line with the implementation of the Inflation Reduction Act (IRA).
For China, Kia has plans for small and medium-sized electric models, including the local version of the recently unveiled EV5. In India starting from 2025, the production of 100% electric models of small dimensions will start, designed for the local market and for other emerging markets. Korea will serve as a global hub for research, development and manufacturing. In 2024, the construction of the first factory dedicated to electric vehicles in Korea will start. The conversion of the production line will begin at the Gwangmyeong plant, with the introduction of two electric models starting next year.
With the focus on EVs, the Gwangmyeong plant will maximize production capacity by introducing innovative technologies such as 3D virtual reality; the integrated data platform and unattended and automated facilities.
The use of ecological paints will be introduced and technologies aimed at saving energy will be adopted to achieve a reduction in harmful emissions (carbon emissions).
As announced in the plan presented last year, Kia will also create a cloud data system for connected cars and, starting in 2025, will extend connectivity features to all new models.
Its wide range of OTA services and optional features, available through the Kia Connect Store, will allow customers to choose those that best suit their lifestyle and to be able to make periodic updates.