Kia goes commercial with EV fleet gambit in new markets, including Japan

Kia has carefully cultivated a youthful, high-tech, sporty brand image around cool rides such as the stylish EV6 and EV9 electric crossovers and its late, great Stinger performance sedan.

Now, as the South Korean carmaker ventures deeper into the EV age, the company is betting on a new direction that could drive critical global volume but possibly stretch those perceptions.

The strategy revolves around electric fleet vehicles for delivery vans, ride-hailing and other commercial ventures. Kia Corp. calls the business concept Platform Beyond Vehicle, or PBV.

To understand how serious Kia is about this new business, consider this: Kia plans to enter the finicky next-door market of Japan for the first time in decades in a bid to sell these PBVs.　

Kia announced the move Sept. 24, saying it would begin selling PBVs in the Land of the Rising Sun in early 2026, starting with the PV5 and then expanding to the PV7 and other PBV models.

The gambit underscores Kia's ambition to grow PBV volume by any means necessary, even if it means taking on a market as notoriously difficult for outsiders to crack as Japan.

Sibling brand Hyundai reentered Japan in 2022 after an initial dismal run in the country forced it to pull out in 2009. Today, Hyundai's local subsidiary sells just three nameplates here.

Through August, those sales tallied 434 vehicles in Japan. The total was up 64 percent from the previous year, but Hyundai still delivered fewer vehicles here than Lamborghini or Ferrari.

Kia hasn't given a volume target for its PBVs in Japan.

But the company is making all-electric commercial vehicles a pillar of its future growth strategy, even in the U.S., where the reconfigurable PV5 workhorse van is expected to land in 2025.

Kia CEO Ho Sung Song said in April that Kia wants to sell 250,000 PBVs globally by 2030. Entering the new segment will help Kia reach global sales of 4.3 million vehicles in that time frame, including 2.48 million electrified ones such as pure EVs and hybrids, the company said.

In 2030, Kia envisions sales of 150,000 PV5s and 100,000 PV7s worldwide.

Song debuted the PBV strategy in 2020, as part of a brand relaunch that included a new logo and ambitious growth targets. At the time, the company dubbed them "purpose-built vehicles."

Since then, the strategy has evolved. The first phase covers three variants of the PV5, which will be used for ride-hailing, delivery and other commercial applications. Multiple versions of the PV5 will be available in the future, including Basic, Van, High Roof and Chassis Cab configurations.

The expansion into commercial vehicles — no matter how modern and techy — stretches Kia's brand capital in a new direction. Once a bargain-basement econobox option, Kia has worked long and hard to climb up market and lift its reputation into something trendy and aspirational.

In the U.S., the brand's biggest market, Kia has virtually pulled even in sales with more-established Hyundai, even though Hyundai is by far the bigger company globally.

Some analysts question how Kia can differentiate the new lineup's vans and runabouts from competing commercial vehicles already on the market, said Ian Park, an automotive analyst at S&P Global Mobility in Seoul. But one difference is that Kia is pioneering new ground with PBVs.

"The idea is different from traditional commercial vehicles," Park said.

"These blend smart car technology, autonomous driving and software platforms into commercial vehicles. They are trying to create a new technology within a new business division."

Kia's vision is almost a hybrid of the passenger and commercial segments, Park said.

Kia has partnered with ride-hailing giant Uber to jointly work on technologies and prototypes for the upcoming PBVs with an eye to someday offering them to Uber drivers and fleets.

The PBV concept designs, at least, are funky and futuristic, with angular styling, big windows and large open cabins that set them apart from utilitarian commercial fare.

Among the envisioned features are a solar-panel roof and a four-wheel steer system that turns the motorized wheels at 90-degree angles. This "crab walk" mode slides the PBV into tight spots.

The largest PBV will be the PV7, which prioritizes interior space and driving range. The smallest is the PV1, designed for last-mile deliveries with compact dimensions to navigate narrow streets.

Still, scoring big volume might be difficult in Japan, a market Kia hasn't competed in since the 1990s, before Hyundai Motor Co. took a controlling stake in the then-struggling automaker.

International mass-market brands have trouble gaining traction in Japan. Ford quit the market long ago, as did Chrysler. General Motors maintains a token presence as a niche player selling Cadillacs, Corvettes and Camaros. Of the traditional American brands, Jeep remains the only serious contender.

On the other hand, Kia might feed a burgeoning demand. Some Japanese fleet operators want emissions-free delivery vehicles, but EV-skeptical homegrown automakers have been slow to launch them, said Christopher Richter, lead Asia auto analyst at CLSA in Tokyo.

Kia may swoop in with South Korean options that are more palatable than Chinese alternatives.