KIA is to launch an EV-based service that combines subscription and car-sharing as a core part of a growth strategy unveiled to investors this month.
Under this new mobility service concept, vehicles will be used for business on weekdays and rented by individuals at the weekends, said President and CEO of Kia Corporation, Ho Sung Song.
Kia’s subscription program ‘Kia Flex’, which was introduced in Korea in 2019, will launch a global version later this year under the name ‘Kia Subscription.’ The service will be operated by Sixt Leasing, which was acquired by Hyundai Motor Group last year, and the vehicles will be provided by the company’s regional affiliates and dealers.
Called ‘Plan S’, Kia’s mid- to long-term strategy takes the company toward a broader business portfolio to redefine the entire mobility ecosystem, beginning with the transition from internal combustion engine to electrification.
Starting with the launch of its first dedicated EV later this year, Kia will also strengthen its EV line-up by 2026 with 11 new models – seven dedicated EVs built on the Electric-Global Modular Platform (E-GMP) architecture, and four based on existing ICE derivatives.
By 2030, eco-friendly vehicles such as EVs, HEVs and PHEVs will make up 40 percent of all sales for Kia, with an annual sales target of 1.6 million units. As part of this, Kia aims to grow EV sales to 880,000 units in 2030 and become a top global seller.
Kia plans to enter a new level of EV profitability with the release of CV later this year. The company expects to achieve profitability at the level of existing ICE models in 2025. It also predicts that EV cost improvement will be continuously strengthened through economies of scale due to the expansion of EV volume and the reduction of material cost through R&D investment.
The company intends to expand its mid- to long-term sales to 3.8 million units in 2025. The percentage of eco-friendly vehicle sales, which is expected to reach around 10 percent of total sales by 2021, is forecasted to increase to 22 percent by 2025. For emerging markets, the company will expand its market share through local CKD (complete knock-down) production.