Kia’s revised 2030 annual sales target of 4.3 million units includes 1.6 million EVs and 34.4 percent higher than the brand’s 2024 annual goal of 3.2 million units.
05 Apr 2024 | 5316 Views | By Autocar Professional Bureau
Kia Corporation today announced an update on its future strategies and financial targets at its CEO Investor Day in Seoul, Korea. The update on its 2030 strategy announced last year is a response to uncertainties across the global mobility industry landscape.
Kia has updated its mid-to-long-term business strategy with ...
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Kia Corporation today announced an update on its future strategies and financial targets at its CEO Investor Day in Seoul, Korea. The update on its 2030 strategy announced last year is a response to uncertainties across the global mobility industry landscape.
Kia has 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."
Strengthen electrified line-ups, flexible production, Carens EV for India
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 the Carens EV for the Indian market. A heavily camouflaged all-electric Carens MPV was snapped testing last year.
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.
Looking to counter rise of Chinese brands
Kia also intends to pursue a multi-strand policy to counter the rise of Chinese competitor brands by strengthening its product competitiveness, establishing a global service and parts operation system, entering new PBV markets, and utilizing Chinese factories for other emerging markets.
Kia will strengthen its product and quality competitiveness in emerging markets, with plans to expand connected services to the Asia-Pacific, Middle East, and Central and South America regions, providing connected functionalities in 74 countries by 2026.
Kia plans to continue to strengthen the performance of its vehicles by expanding the number of models featuring over-the-air (OTA) technology to 18, and increasing the installation rate of advanced driver assistance systems (ADAS) to more than 63 percent of models.
Optimized and flexible business operation
Despite Kia’s continued growth, global vehicle demand still remains below pre-Covid levels, due largely to weakened purchasing power caused by high interest rates and inflation. Concurrently, many EV brands have invested aggressively to compete for lower prices.
Kia will respond to this situation first by maintaining a proper inventory level through flexible production and operation. Then, by managing the optimal incentive operation strategy with the best residual value, Kia will maximize value for its customers.
Furthermore, the brand will continue to provide innovative products to customers, enhancing the user experience. For example, generative AI technology will be deployed to provide in-vehicle AI voice services, making its debut later this year in the EV3 and K4.