“Plan S” strategy announced by KIA, a BEV model to come out in 2021

MANILA: It hasn't been long since Hyundai revealed its plans for the near future, and the South Korean automaker's sister company, that is, Kia, has now announced its strategies for the upcoming times. Much similar to what Hyundai laid out, Kia will also lay more emphasis on electric vehicles and invest huge capital in order to improve the tech and achieve goals. "Kia Motors will transform itself into a ceaselessly innovative brand by accelerating its bold and preemptive transition to future businesses", said Kia CEO Hanwoo Park.

As per the mid- to long-term strategy, the South Korean automaker is targetting the feat of becoming one of the major players in the unfolding automotive industry with its enhanced electrification and mobility services. Moreover, the automaker is also aiming at making big strides in the field of connectivity and autonomy. With the "Plan S" strategy, Kia has set its eyes on moving on from offering ICE vehicles to electric vehicles and customized mobility solutions. The company also believes that the two-track Plan S strategy aimed at the transition to electric and autonomous vehicles as well as mobility services will be well supported by the two-track Plan S strategy.

The two strategic objectives of "Plan S" are as follows:

• Leading the popularization of electric vehicles
• Expanding mobility services for electric and autonomous vehicles, and entering the PBV business

Kia aims at offering 11 battery electric vehicles by 2025 and clinch on to a 6.6% share of the global EV market (excluding China). Besides that, the South Korean automaker is also planning to make its eco-friendly cars contribute to 25% of its total sales. Another goal that Kia wants to achieve is 500,000 annual EV sales and 1 million eco-friendly vehicle sales globally by 2026 (excluding China).

Preemptive transition to EVs:

• Launch a dedicated BEV model in 2021
• Establish a full EV line-up of 11 models and reach a 6.6% global EV market share by 2025
• Sell 500,000 BEVs and one million eco-friendly vehicles by 2026
• Simultaneously offer derivative EV models and dedicated models with differentiated pricing and specification
• Nurture key developed markets as major bases for EVs; achieve a 20% sales share out of all Kia models by 2025
• Selectively introduce EV models in emerging markets; and raise sales of ICE vehicles
• Adopt development system for EV architecture
• Achieve EV sales innovation

Provision of customized mobility solutions:

• Establish Mobility Hubs in cities with stricter environmental regulations and greater use of EVs, and provide eco-friendly mobility services
• Explore new business models such as logistics and car maintenance via Mobility Hubs
• Operate mobility services based on electric and autonomous vehicles in the long term
• Lead PBV markets for corporate clients; offer customized PBVs for target customers

Speaking of investment, Kia will be shelling out 29 trillion won (US $25 billion) for the "Plan S". Following the investment, the company is aiming to achieve a 6% operating profit margin and a 10.6% return on equity (ROE) ratio. Kia CEO stated that the "Plan S" is a bold and enterprising roadmap for the company's business transformation in the near future and will be well supported by the two pillars of electric vehicles and mobility solutions. Besides, the company will also make efforts in developing products and services that offer fresh experiences for customers and resuscitate the brand innovation.

"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 Kia Motors President and CEO Han-woo Park.

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