Kia Motors to invest 29tr won in future mobility

Kia Motors Corp., South Korea's second-biggest carmaker by sales, said Tuesday it will invest 29 trillion won ($25b) in electric vehicles and business diversification by 2025. Kia Motors made the announcement as it aims to transform itself into a leading electric vehicle manufacturer while reducing the ratio of combustion engine vehicles it makes.

"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 business portfolio," Kia Chief Executive and President Park Han-woo said at an investor relations session in Seoul.

With the planned investments, Kia aims to increase the number of all- electric models in its lineup from the current two to 11 and achieve a share of 6.6 percent of the global EV market in 2025, up from the current 2 percent, the company said in a statement.

In 2021, Kia plans to launch a new crossover allelectric model that can travel over 500 kilometers on a single charge and that takes only 20 minutes to fully charge.

The company will focus on the domestic market and advanced markets such as the U.S. and Europe, while selectively launching EV models in emerging markets due to a lack of charging infrastructure and subsidies. The maker of the K5 sedan and the Sorento sport utility vehicle aims to sell 500,000 EVs and 1 million environmentally friendly vehicles in global markets outside China in 2026.

Kia also wants to achieve an operating profit margin of 5 percent in 2022 and increase it to 6 percent in 2025 by advancing to new businesses including purpose-built vehicle (PBVs) services and mobility services based on EVs and autonomous vehicles.

PBVs allow passengers to enjoy tailored services while traveling to their destinations. Upon personalization, they can function as a restaurant, coffee shop and hotel, or even a clinic and pharmacy, in addition to an urban shuttle. "We are aiming to secure corporate clients that will use PBVs as coffee shops, hospitals and other purposes in business diversification," a company spokesman said. When it comes to autonomous vehicle technologies, Kia will work with Ireland-based autonomous vehicle startup Aptiv to develop a self-driving platform by 2022.