Kia Motors aims progressively establishing a leadership position in the future automotive industry, encompassing electrification and mobility services, as well as connectivity and autonomy. For achieving this goal, the company recently announced details of ‘Plan S’, its mid- to long-term strategy.
The Plan S strategy outlines Kia’s preemptive and enterprising ‘shift’ from a business system focused on internal combustion engine vehicles toward one centered on electric vehicles and customized mobility solutions. The company’s ongoing brand innovation and profitability enhancement will support the two-track Plan S strategy targeting the shift toward electric and autonomous vehicles as well as mobility services.
Key points of the plan are as follows:
• Kia to offer 11 EVs by 2025, targeting a 6.6% global EV market share
• Kia to launch a dedicated EV model in 2021
• Kia to reach 25% share of its sales from eco-friendly vehicles by end of 2025
• Global annual sales target of 500,000 EVs, 1 million eco-friendly vehicles by 2026
• Mobility products and services to prioritize customer value
• Kia to enhance profitability by improving existing businesses and leadership in future businesses
• Kia to enter PBV market for corporate customers, offer customized PBVs
• Kia to invest 29 trillion won (US $25bn) by 2025
• Company targets 6% operating margin and 10.6% ROE in 2025
Alongside Kia’s 2025 financial and investment strategy, details of Plan S were announced to shareholders, analysts and credit-rating agencies at the company’s CEO Investor Day in Seoul recently.
Source: Kia Motors