Kia plans EV sales blitz by 2030, slashing battery costs, boosting profitability

TOKYO — Kia, hot off the successful launch of a new line of electric vehicles, is ramping up its ambitions with a fresh goal to get more than half its global sales from electrified vehicles in 2030 as it targets a 34 percent increase in total global volume to 4.3 million vehicles in that time.

Kia CEO Ho Sung Song outlined the vision Wednesday in the company’s annual CEO Investor Day presentation.

The automaker wants to sell 2.38 million full-electric and hybrid vehicles in 2030, he said.

That represents a 300,000-vehicle increase over Kia’s target from last year.

EVs will account for some 1.6 million of those vehicles in 2030, as Kia expands its full-electric lineup to 15 models by 2027, Song said.

Following the introduction of the popular EV6 hatchback, Kia plans to release the EV9 three-row all-electric crossover this year as the brand’s new flagship.

Also on tap in the midterm is the smaller EV5 crossover, Kia said.

Kia expects to sell 258,000 EVs worldwide in 2023. The revised 2030 EV sales target represents an increase over the 1.2 million goal Kia had set for worldwide EV sales just last year.

To supply the coming EV surge, Kia will open its first dedicated EV factory next year in Gwangmyeong, outside Seoul.

In the U.S., Kia will also produce key EV models locally, beginning in 2024. It will also produce small and midsize EVs in Europe.

Kia wants EVs to contribute 53 percent of its overall corporate profit in 2030.

Kia’s upbeat outlook comes amid increasing enthusiasm for EVs across the industry as automakers from Japan to Europe and the U.S. hike sales expectations amid stronger customer interest and government regulations and subsidies that promote the technology.

The shift to electrification will also help Kia move its brand image upmarket, Song added.

“In 2021, Kia went through a full-scale transformation of its corporate name, logo, product and design, as well as corporate strategy. As a result, our brand value has improved significantly,” Song said in a news release. “Kia needs to continue its efforts to strengthen Kia brand identity.”

Overall, fast-growing Kia expects global sales to reach 4.3 million vehicles in 2030, a 34 percent increase over its sales target of 3.2 million for 2023, Song said.

In outlining Kia’s corporate strategy for the coming years, Song also detailed plans for his so-called purpose-built vehicle business.

Kia will launch a midsize PBV, a kind of dedicated fleet vehicle, in 2025 and eventually expand the lineup to include robotaxis with automated driving.

In product news, Song said Kia will offer a high-performance GT trim on all future EV models.

Other key highlights of Kia’s road map:

• EVs are to account for 37 percent of global sales in 2030, up from an 8 percent target in 2023.
• Conditional Level 3 automated driving is to be introduced in 2023 in the EV9.
• Corporate carbon neutrality is to be achieved by 2045.
• An operating profit margin of 9 percent is to be delivered in 2026 and 10 percent in 2030.

Kia’s U.S. sales surged 22 percent to 184,136 vehicles in the first quarter of 2023. Kia’s worldwide sales rose 12 percent to 767,700 in that period.

“Kia aims to create growth momentum that outperforms the wider market growth with its competitive products and enhanced brand perception,” Kia said in the statement.

“The sale of electrified vehicles will drive the growth.”

By lifting the brand’s image and perception, Kia said it will focus on moving higher-trim models, enabling it to achieve higher average vehicle prices and command fatter margins.

Last year, EVs contributed just 5 percent to overall profit. Song wants that to grow to 32 percent in 2026 and then 53 percent by 2030. Better profitability will come partly by cutting the cost of batteries 55 percent by 2030, compared with 2018 prices, the company said.

In 2022, Kia was the No. 4 seller of EVs in the U.S., with a 3.8 percent market share, just ahead of sibling brand Hyundai but behind market leader Tesla, No. 2 Ford and third-ranked Chevrolet.