Kia increases 2030 goal for clean-energy car production

Kia aims to increase sales of so-called clean energy cars, including electric vehicles (EVs), hybrid and plug-in hybrid cars (PHEVs,) to 2.38 million, or 55 percent of total global sales by 2030.

Kia provided updated goals and specific details of its future strategies to shareholders and analysts at the 2023 CEO Investor Day held at the Conrad Hotel in Yeouido, western Seoul, on Wednesday afternoon.

The 2030 global sales target for clean energy cars increased by 15.5 percent compared to the one announced last year.

Of that range, 2.38 million units will be EVs, the carmaker said. This is an increase of 33 percent compared to the 2030 target disclosed last year.

Kia said it is aiming to sell 4.3 million vehicles a year globally by 2030, inching up 7.5 percent from its previous goal. The 2030 global sales target is 34.4 percent higher than the 2023 annual sales target of 3.2 million units.

Kia will introduce 15 EV models by the end of 2027, including Kia EV9, its first three-row electric SUV. The number of electric car models also increased by one from last year’s announced plan.

Backed by its record-high performance in 2021 and 2022, Kia also increased its mid-to-long-term financial targets.

The revenue goal for 2030 is set at $121.8 billion (160 trillion won), representing an 84 percent increase compared to 2022. The operating profit target is 16 trillion won, which is a 122 percent increase, and the operating profit margin target is 10 percent, a 1.6 percentage point increase.

Kia plans to invest 32 trillion won over the next five years, much of it going toward EVs, Purpose-Built Vehicles (PBVs) and autonomous-driving technology.

“In order to become a sustainable mobility solutions provider, we will continue efforts to strengthen our brand identity and establish an innovative and customer-centric business model,” said Kia CEO Song Ho-sung.

In 2020, the carmaker announced its mid-to-long-term strategy, with a key emphasis on proactively transitioning toward becoming an EV-centric business and offering tailored mobility solutions. Since then, Kia has been holding a CEO Investor Day annually to share the company’s progress toward its future objectives and vision.

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]