Kia Corporation today provided an update on its future strategies through the Kia CEO 2023 Investor Day event held in Seoul. The Korean carmaker has updated its mid- to long-term business strategy with a focus on electrification. Kia’s updated 2030 annual sales target is 4.3 million units, of which 2.38 million units – or 55% – will be electrified vehicles. The financial targets have also been increased to KRW 160 trillion in gross revenue, 16 trillion won in operating profit and 10 percent in operating profit margin.
Kia first unveiled its mid- to long-term strategy entitled ‘Plan S’ in 2020, which focuses on a pre-emptive transformation towards an EV-focused business and providing customised mobility solutions. Since then, Kia has held a CEO Investor Day every year to present updates on the company’s future vision and goals.
Electrified car sales target raised by 55%
Kia’s 2030 global sales target of 4.3 million units is 34.4% higher than its 2023 annual sales target of 3.2 million units. It also plans to become a leading EV brand by raising the proportion of electrified car sales to 55% (2.38 million units) in 2030. This is a 7.5% (300,000 units) increase from the 2030 target announced in 2022, while the global sales target for electrified vehicles has increased by 15.5 percent (320,000 units).
“In 2021, Kia went through a full-scale transformation of its corporate name, logo, product and design, as well as corporate strategy. In order to become a Sustainable Mobility Solutions Provider, Kia needs to continue its efforts to strengthen Kia brand identity and establish an innovative and customer-centric business model,” said Kia President and CEO Ho Sung Song.
Key within the refreshed sales targets, Kia increased its 2026 annual EV sales target to a million units and 2030 EV sales target to 1.6 million units annually, representing a 25% increase and 33% increase, respectively, from goals announced a year earlier.
The update is based on Kia’s confidence in its award-winning products. The EV6 won the ‘2022 European Car of the Year’ and ‘2023 North American Utility Vehicle of the Year.’ Kia now plans to build an EV line-up of 15 models by 2027, including the flagship model EV9 revealed recently.
With the expansion of its EV line-up, Kia plans to rapidly increase EV sales. Starting with a target of 258,000 units of EV sales this year, the company has set a goal of selling 1,005,000 electric vehicles in 2026 and 1.6 million units in 2030, up 400,000 units (33%) from its target of 1.2 million units announced during the CEO Investor Day 2022.
Small EVs for India and emerging markets from 2025
In order to respond to fast-growing EV markets around the globe, Kia aims to locally produce strategic models that drives regional sales.
In Europe, Kia plans to locally produce small and mid-sized EVs, as they are the key drivers of sales in the region. In the U.S., Kia also aims to produce key EV models locally, beginning 2024, in line with implementation of the Inflation Reduction Act (IRA).
Kia in China plans to produce small and medium-sized EV models, including the recently unveiled EV5, and India will also produce small EV models optimised for the local market and other emerging markets from 2025.
Korea will serve as a global hub for research, development, and production of EV models. Kia will build its first dedicated EV factory in Korea in 2024. Kia will convert the production line of factory in Gwangmyeong for EV production, planning to start production of two EV models next year.
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