Kia's "Plan S" targets electric vehicles and mobility solutions
Kia Motors Corporation has announced details of ‘Plan S’, its mid- to long-term strategy targeting the shift toward electric and autonomous vehicles, as well as mobility services.
The Plan S strategy outlines Kia’s ‘shift’ from a business system focused on internal combustion engine vehicles toward one centered 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 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 1 million eco-friendly vehicles (excluding China).
Alongside these objectives, Kia will offer EV-based mobility services as part of its new business model, helping solve global urban problems such as environmental pollution. In the Purpose Built Vehicle (PBV) market, anticipated to grow on the back of expanding car-sharing and e-commerce businesses, the company will secure leading-edge competitiveness.
Plan S will see Kia Motors invest a total of 29 trillion won (US $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 (ROE) ratio to secure the necessary capital and maximise shareholder value.
As the two strategic objectives of Plan S, Kia will concentrate on leading the popularisation of electric vehicles, and expanding mobility services for electric and autonomous vehicles, as well as entering the PBV business.