Kia Motors Corporation has revealed details of ‘Plan S’, its mid- to long-term strategy aims to progressively establish a leadership position in the future automotive industry, encompassing electrification and mobility services, as well as connectivity and autonomy.
Kia Motors president Han-woo Park
The Plan S strategy outlines Kia’s preemptive and enterprising shift from a business system focused on internal combustion engine vehicles toward one centred on electric vehicles and customised mobility solutions. The company’s ongoing brand innovation and profitability enhancement will support the two-track Plan S strategy targeting the shift toward electric and autonomous vehicles as well as mobility services.
Plan S was revealed at Kia’s CEO investor day in Seoul on Tuesday.
By the end of 2025, Kia plans to offer 11 EVs. With these models Kia 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 one million eco-friendly vehicles (excluding China).
Plan S EV strategies
- Launch dedicated EV model in 2021
- Establish 11-model EV lineup, reach 6.6 per cent global EV market share by 2025
- Sell 500,000 EVs, one million eco-friendly vehicles by 2026
- Offer derivative EV models, dedicated models with differentiated pricing, specifications
- Nurture key developed markets for EVs; achieve 20 per cent sales share out of all Kia models by 2025
- Selectively introduce EV models in emerging markets; raise sales of ICE vehicles
- Adopt development system for EV architecture
Plan S mobility strategies
- Provision customised mobility solutions
- Pursue mobility services based on EVs, AVS, enter purpose-built vehicle (PBV) business
- Establish Mobility Hubs in cities with stricter environmental regulations and greater use of EVs; provide eco-friendly mobility services
- Explore new logistics, car maintenance via Mobility Hub business models
Kia plans to invest $25 billion by the end of 2025 to establish leadership in vehicle electrification and diversify its business. By the end of this period, Kia Motors is targeting a six per cent operating profit margin and 10.6 per cent return on equity ratio to secure the necessary capital and maximise shareholder value.
Speaking at the company’s CEO investor day, Kia’s president and CEO Han-woo Park commented: “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.
“Kia Motors will actively innovate to take on the challenges ahead, identifying and capitalising on new opportunities to propel the company forward.”