On March 3, 2022, Kia officially unveiled its "Strategy 2030" at the Investor Conference, once again clarifying its corporate vision to become a "Sustainable Mobility Solutions Provider".
Kia President and CEO Song Husheng once again clarified the corporate vision and released the "2030 Strategy" at the 2022 Investor Conference
Kia's Strategy 2030 builds on the medium- and long-term strategy of Plan S, which was first announced two years ago and has been initially successful, and further elaborates on more specific details of Kia's vision of becoming a "Sustainable Mobility Solutions Provider." This corporate vision is based on the three pillars of "people", "earth" and "profit", and strives to reduce carbon emissions, enhance customer value, cultivate talents, create profits and fulfill corporate social responsibility based on the environment.
In addition, Kia also announced four core business goals for 2030, including: accelerating electrification to achieve annual sales of 1.2 million pure electric vehicles by 2030; global annual sales of 4 million vehicles by 2030, of which more than 2 million are eco-friendly models; all new cars are equipped with intelligent interconnection systems and autonomous driving technology; and becoming the number one brand in the global personalized customized vehicle (PBV) market by 2030.
Kia announced its four core business goals for 2030
Speaking at the investor conference, Ho Sung Song, President and CEO of Kia, said: "Kia is undergoing a comprehensive transformation that encompasses corporate vision, identity, products and design, and strategy. In order to achieve our corporate vision of becoming a Sustainable Mobility Solutions Provider, we will focus on accelerating the transformation to future business models." We will be more customer-centric and pursue dynamic transformation while maintaining robust business operations. ”
Vigorously promote environmentally friendly models, achieving annual sales of 4 million vehicles worldwide
Starting from its global sales target of 3.15 million units by 2022, Kia aims to continue to drive sales growth with the world's leading product quality, and plans to achieve its global sales target of 4 million units per year by 2030. As an important part of sales growth, Kia will increase sales of eco-friendly models, including pure electric vehicles, plug-in hybrid vehicles and hybrid vehicles, by accelerating the transformation of electrification.
In particular, in major markets such as China, South Korea, North America, and Europe, where environmental regulations are stringent and demand for electric vehicles is growing, Kia plans to increase sales of eco-friendly vehicles to 78 percent by 2030.
By 2027, the lineup of pure electric vehicles will be expanded to 14 models
Kia is accelerating its electrification transition, further cementing its position as the world's leading manufacturer of electric vehicles. Starting in 2023, Kia plans to launch at least two pure electric vehicles per year, and by 2027, create a complete lineup of 14 pure electric vehicles.
Kia also plans to consolidate its dominance in the electric vehicle market through the launch of its flagship electric model, the EV9, in 2023. The EV9 is a large SUV with a total length of nearly 5 meters, which has excellent performance within 0-100km/h acceleration time of less than 5 seconds, and the driving distance reaches 540km after full charge, and it takes only 6 minutes to charge to increase the cruising range of 100km.
By 2027, Kia will build a complete lineup of 14 pure electric models, and in 2023, the flagship electric model Kia EV9 will be the first to be launched
Kia plans to sell 1.2 million pure electric vehicles by 2030
Kia hopes to increase sales of pure electric vehicles with new models such as the EV9. This year, Kia's pure electric vehicle sales target is 160,000 units, 807,000 units in 2026, and finally 1.2 million units by 2030. This is a 36% increase from the 2030 pure electric vehicle sales target set at last year's Kia Investor Conference, further demonstrating Kia's confidence and determination in the field of electric vehicles. By 2030, Kia expects more than 80% of its pure electric vehicle sales to come from major markets such as China, South Korea, North America, and Europe, where pure electric vehicles will account for 45% of Kia's total sales.
In order to adapt to the growing electric vehicle market, the role of Kia's various bases around the world will also change. South Korea will become the center of its global electric vehicle research and development, production and supply, while other production sites will produce strategic electric models for the local market.
As eviction car sales increase, Kia expects battery demand to increase significantly from 13GWh to 119GWh by 2030. Currently, Kia is developing a battery supply and demand strategy and upgrading its battery technology. By 2030, it is planned to increase battery energy density by 50%, reduce system costs by 40%, and further improve performance and price competitiveness.
Continue to focus on intelligent interconnection and autonomous driving technology
Kia will focus on four major areas: intelligent and connected services, autonomous driving technology, high performance, and design to create core products that lead the future mobility industry.
From 2025 onwards, all new Kia models will be equipped with world-class intelligent and connected systems. With the popularity of OTA (Over-the-Air) and FoD (Feature-on-Demand) services, customers can easily update the various functions and technologies of the vehicle in a timely manner. This is also one of kia's achievements in finding new business opportunities based on software and connected car services. Kia expects connected services to play an important role in a variety of mobility areas, including car sharing, ride-hailing, and distribution.
Kia's self-driving technology, AutoMode, will be the first to be applied on the EV9 in 2023 and will quickly spread to the entire product lineup. By 2026, all new models launched in major markets will be equipped with AutoMode autonomous driving technology, and the adoption rate is expected to exceed 80%.
At the same time, Kia emphasized the differentiated design of products and said that it would launch more high-performance models. Starting with the EV6 GT high-performance model, Kia plans to launch a high-performance version of all pure electric models.
Consolidating the global market leadership for personalized vehicles (PBVs).
Kia has always been customer-centric and committed to providing a variety of flexible mobility services to meet the different needs of individual users and corporate users. To this end, Kia's core work in this area will focus on personalized vehicles (PBVs) and plans to become a leader in this market.
The ultimate purpose of the Individualised Vehicle (PBV) is to provide customers with special vehicles according to their individual needs. To this end, Kia plans to establish a dedicated communication channel for personalized customized vehicles (PBVs) that can respond quickly and accurately to customer needs. At the same time, a comprehensive data platform will be established to provide customized services and solutions according to the different business models of personalized customized vehicle (PBV) customers, such as vehicle charging, maintenance and management.
In the short term, Kia plans to develop personalized customized models (PBVs) based on existing models, for example, in the second half of this year Kia will launch the Niro Plus based on the niro SUV, a popular eco-friendly model. In the medium to long term, Kia will gradually launch and develop dedicated personalized customized models (PBVs) from 2025 onwards based on a pure electric vehicle skateboard platform, exploring feasible alternatives to public transportation, and even having the possibility of doing a mobile office.
The 2026 financial target is based on eviction vehicle profitability and growth prospects for new business segments
Kia also announced its medium- and long-term financial targets on the day of the investor conference. By 2026, total sales will reach 120 trillion won, operating profit will reach 10 trillion won, and the operating profit margin will be 8.3%. In 2026, Kia aims to increase its market capitalization to 100 trillion won, three times its market value by the end of 2021.
By 2026, Kia plans to reduce fixed costs by expanding production and reducing technology development costs, achieving an operating margin of 39% for pure electric vehicles. In addition, by 2026, all eco-friendly models will contribute 52% to operating profits, surpassing models with internal combustion engines.
To achieve these goals, Kia will not only expand sales of its eco-friendly models, but will also significantly increase profitability through the commercialization of new businesses and new technologies, ensuring more sales volumes and profitability structures. Kia will invest a total of KRW 28 trillion in its business operations over the next five years, of which 46% will be spent on future businesses.
Looking ahead, Kia will continue to work on The Environment Social Governance (ESG) management. To this end, Kia has developed a medium- and long-term roadmap for environmental and social governance (ESG) management in 2020 and announced a goal of achieving carbon neutrality by 2045. In addition, Kia will actively participate in Hyundai Motor Group's next-generation projects such as Advanced Air Mobility (AAM) and Robotics, hoping to create synergies between Hyundai Motor Group's advanced air mobility (AAM) work and Kia's personalized vehicle model (PBV) business.
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