It looks like more automakers are making the jump as a mobility solutions company. Rather than just building cars for consumers to buy, Kia has officially announced that it will transition into a mobility company, while also further establishing itself in making electrified vehicles in the near future.
Under the company's 'Plan S' investment plan, Kia will be looking to invest a total of KRW 29 trillion (about Php 1.268 trillion) by the end of 2025 in order to become a leader in the EV market, and further diversify its business. Kia plans to do this by leading the popularization of electric vehicles, and expanding mobility services for electric and self-driving vehicles.
By the year 2025, Kia is looking to have a 6% operating margin, have a 25% share of sales from eco-friendly vehicles by the end of 2025, and hold a 6.6% global EV market share. Come 2026, Kia expects to have an annual sales target of 500,000 EVs, and have 1 million eco-friendly vehicles by 2026.
“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 capitalizing on new opportunities to propel the company forward,” said Han-woo Park, president and CEO of Kia Motors.
Apart from Kia's two-prong strategy under Plan S, the company will also be revealing its new brand system in the second half of 2020. With it, the company will pursue innovations in terms of brand and corporate identities, design language, and user experience. Kia claims that this will allow customers to 'directly feel, experience, and understand the company's evolution as an enterprise' in EVs and mobility solutions.
The automaker is looking to have a full lineup of 11 EVs by 2025, as well as add new EV models on existing models including SUVs and MPVs from 2022. Beyond those, Kia also plans to reveal a dedicated EV model in 2021 that will be built on a unique platform that will be able to house various EV powertrain and technologies. Kia even mentioned that it will have a crossover design, a range of over 500 kilometers, and a sub-20-minute high-speed charging time.
As for Kia's roadmap for mobility solutions, autonomous robotaxis, and on-demand roboshuttles for urban settings are just some vehicles that Kia plans on rolling out. Kia will also enter the Purpose Built Vehicle (PBV) market, where demand is expected to grow amid the proliferation of e-commerce and car sharing.
Across key global cities where EVs are now popular, the company will collaborate with local partners to establish Mobility Hubs that can house EV charging stations, and maintain vehicles. These Mobility Hubs will also serve as a bridge for cars powered by internal combustion engine which might be banned in certain parts of a city. With it, drivers can park their cars here and then use an EV to get into the inner parts of a city.
With Toyota and Hyundai already announcing their intent to become mobility companies, Kia's announcement of going towards the same route signifies a clear shift in the auto industry. We won't be surprised if other auto groups will also state their intentions of becoming a mobility solutions company in the near future.