Kia Motors this week announced details of its Plan S mid to long term strategy aimed at establishing leadership in key growth segments of the automotive industry, including powertrain electrification, mobility services, connectivity and autonomous driving.
The automaker said it planned to spend KRW29 trillion (US$25bn) by 2025 to achieve its targets, which include ‘eco-friendly’ vehicles accounting for 25% of its global sales by end of 2025 – or about 1m vehicles.
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This target includes 500,000 battery powered electric vehicles (EVs) for a projected global market share of 6.6% to be achieved with the launch of 11 new EV models by 2025.
The company said it planned to launch its first dedicated crossover EV model in 2021 with a range of up to 500km (300 miles) and a recharging time of 20 minutes, to strengthen its existing line up which currently includes the eNiro and Soul EV models.
Kia said it was targeting an operating margin of 6% and a return on equity (ROE) of 10.6% by 2025, helped by an increased focus on mobility services.
This compared with an operating profit of 3.4% in the first nine months of 2019.
Group CEO Hanwoo Park said in a statement: “Kia Motors will transform itself into a ceaselessly innovative brand by accelerating its bold and preemptive transition into future businesses. We are not simply adapting to changes in the automobile market but adopting innovation to make a leap forward to become a leading player in next generation vehicles through a bold and preemptive transition in our business portfolio”.
