Kia Motors Corporation has announced details of 'Plan S', its mid to long-term strategy aimed at progressively establishing a leadership position in sectors encompassing electrification and mobility services, as well as connectivity and autonomy.
The Plan S strategy outlines Kia's enterprising shift from a business system focused on internal combustion engine vehicles towards one centred on Electric Vehicles (EV) and customised mobility solutions. By the end of 2025, Kia plans to offer a full lineup of 11 battery electric vehicles.
With these models, Kia is looking to achieve a 6.6% share of the global EV market (excluding China), while also expanding the share of its sales of eco-friendly cars to 25%.
With the global EV market expected to gain strength by 2026, Kia is aiming for 500,000 annual EV sales and global sales of 1 million eco-friendly vehicles (excluding China).
Alongside these objectives, Kia will offer EV-based mobility services as part of its new business model, helping solve global urban problems such as environmental pollution.
In the Purpose Built Vehicle (PBV) market, anticipated to grow on the back of expanding car-sharing and e-commerce businesses, the company will seek to secure leading-edge competitiveness.
Plan S will see Kia Motors invest a total of $33.7 billion by the end of 2025 to establish leadership in vehicle electrification and diversify its business. By the end of this period, Kia Motors is targeting a 6% operating profit margin and 10.6% return on equity ratio to secure the necessary capital and maximise shareholder value.
