Kia Motors will invest 29 trillion won (about US$25 billion) over the coming six years to transform into an innovative brand, the company’s CEO announced on Jan. 14.
Kia Motors CEO Park Han-woo hosted the company’s first investor day for this year to unveil “Plan S,” a medium- and long-term strategy aimed at a bold and swift shift to future businesses, including electric vehicles (EVs) and mobility.
investor day event held at the Conrad Hotel in Yeouido, Seoul was attended by officials from institutional investors, credit rating firms and analysts.
Park said the “S” in Plan S stands for “shift,” saying that it represents the company’s push for a complete transformation. To this end, the company is planning to change its corporate identity (CI) and brand identity (BI).
The core of Plan S is to improve the profitability of the internal combustion engine business to secure investment resources, and invest a total of 29 trillion won by 2025 to switch from internal combustion engine vehicles to EVs and mobility systems.
Kia Motors’ strategy is focused on EVs. The automaker plans to build a full lineup of 11 EV models by 2025 after launching a purely electric model in 2021. The company plans to achieve a 6.6 percent market share in the global EV market and increase the share of eco-friendly cars including EVs to 25 percent of its sales through this strategy. In 2026, when the EV business is put on the right track, it will sell one million eco-friendly vehicles including 500,000 EVs throughout the world except China. In addition, the Korean automaker will release a pure EV model next year that can run more than 500 km on one single charge and can be fully charged within 20 minutes.
Kia Motors’ EV models will be loaded with EV-only platforms and adopt crossover designs that break down a barrier between passenger cars and sport utility vehicles (SUVs).
Its EVs will be divided into luxury and budget models. In advanced markets such as Korea, North America, and Europe, the proportion of its EV sales will increase to 20 percent by 2025. Kia Motors will launch EVs in emerging markets in consideration of EV diffusion.
Kia Motors also suggested mobility services as another future business. The gist is to provide mobility services based on EVs and autonomous driving in major global cities. For example, Kia Motors will build mobility hubs with EV charging stations, maintenance centers and convenience facilities in large global cities where people are very concerned about the environment and electric cars are gaining popularity. Kia Motors' plan is to develop new businesses such as car sharing, maintenance, and robotic shuttles by using these hubs as bases for transfers from internal combustion engine vehicles, which are not allowed to enter downtown areas due to environmental regulations, to EVs.
Kia Motors said it will push for fundamental innovations in all areas. The carmaker will try to change its design identity (DI) and user experience (UX), as well as CI and BI, so that consumers can directly feel and understand Kia Motors’ changing business system. Kia Motors’ new brand system will include such concepts as a leader in the era of EVs, a brand loved by millennials and Generation Z, and a symbol of challenge and innovation.