Kia has announced details of ‘Plan S’, a mid- to long-term strategy aimed at establishing a leadership position for the company in the future automotive industry.
The Plan S strategy outlines Kia’s ‘shift’ to a business system centred on electric vehicles and customised mobility solutions.
By the end of 2025, Kia plans to offer a full line-up of 11 battery electric vehicles. With these models, the company says it is looking to achieve a 6.6 per cent share of the global EV market (excluding China), while also attaining a 25 per cent share of its sales from its eco-friendly cars. With the global EV market expected to gain strength by 2026, Kia is aiming for 500,000 annual EV sales and global sales of 1 million eco-friendly vehicles (excluding China).
The company says a dedicated EV model is to be launched 2021 which will be built on a unique platform. It will offer a crossover design which ‘blurs the boundaries between passenger and sport utility vehicles’, offers a future-oriented user experience, and a single-charge driving range of over 500km with sub-20-minute high-speed charging time.
Alongside these objectives, Kia will offer EV-based mobility services as part of its new business model. In the Purpose-Built Vehicle (PBV) market, anticipated to grow on the back of expanding car-sharing and e-commerce businesses, the company says it will secure ‘leading-edge competitiveness’. The plan here includes establishing Mobility Hubs in cities with stricter environmental regulations and greater use of EVs; provide eco-friendly mobility services; explore new business models such as logistics and car maintenance via Mobility Hubs; and operate mobility services based on electric and autonomous vehicles.
Kia says it will invest a total of 29 trillion won ($US25 billion, $AU36.2 billion) by the end of 2025 as part of the plan to establish leadership in vehicle electrification and diversify its business.
“As the auto industry undergoes turbulent changes, today is also an opportune time for Kia Motors to radically transform itself into a global enterprise dedicated to spearheading customer value-led innovations,” said Kia Motors President and CEO Han-woo Park. “Kia Motors will actively innovate to take on the challenges ahead, identifying and capitalising on new opportunities to propel the company forward.
“Plan S is a bold and enterprising roadmap for Kia’s future business transition, buttressed by the two pillars of electric vehicles and mobility solutions. Our approach is to put customers first, and Kia will reinvigorate its brand innovation by developing products and services that offer new experiences for customers.”