Kia’s volume model EV3 to spearhead its electrification push: CEO

Kia Corp., South Korea’s second-largest automaker, said on Friday its upcoming volume electric model EV3 will spearhead the company’s electrification push.

At Kia’s annual general meeting earlier Friday, Chief Executive Song Ho-sung said the company aims to increase electric vehicle sales this year despite growing signs of an industry slowdown.

“We expect a challenging environment in the auto industry this year due to slowing new vehicle demand amid intensifying competition with our rivals. Nevertheless, we are aiming high with more sales than last year,” he said.

Kia, an affiliate of Korea’s top automaker Hyundai Motor Co., plans to sell 3.2 million vehicles this year, up 3.5% from 2023.

To achieve its 2024 goal, Kia is slated to launch the EV3, a compact electric sport utility vehicle, in the first half.

Retail prices of the EV3 models are expected to start from 46.5 million won ($35,000) but after government subsidies, the volume model could be priced as low as 30 million won, company officials said.

“The EV market is experiencing a temporary slowdown in demand, but the era of EV will come sooner or later. There’s no doubt about it,” the CEO said.

Last October, Kia showcased the EV3 and the EV4 electric sedan – part of its cheaper eco-friendly EV lineup to appeal to budget-conscious drivers.

The carmaker also plans to successively introduce the EV1 and EV2, entry-level models, which are likely to be priced at around $30,000.

In August, it unveiled the design of the EV5, its first China-made all-electric vehicle that the company plans to sell globally.

The company, which currently sells the EV9 and the EV6 electric crossover, plans to release 15 electric models priced between $30,000 and $80,000 by 2027.

KIA STAKES ITS FUTURE ON PBVs

Song said purpose-built vehicles (PBVs) are Kia’s “future growth engine and core business.”

Kia’s PBV business will go into full swing from the middle of next year, he said.

The company is building a dedicated electric PBV factory in Korea, with a plan to begin mass production of the mid-sized PV5 model next year.

Kia, which is leading Hyundai Motor Group’s PBV projects, aims to become the world’s top PBV player by 2030 by launching various custom-tailored vehicles.

The market for personalized vehicles has huge growth potential as such cars can be used for various purposes such as public transportation, clinics, cafes, living spaces and freight transfer.

Kia’s PBV business is integral to its future mobility strategy dubbed Plan S, which details its shift toward future mobility. The company expects purpose-built vehicles to account for about a quarter of its cars sold globally by 2030, according to Song.

He said the company would be reborn as a first-mover instead of a fast-follower in the era of future mobility by focusing on the emerging segment of purpose-built vehicles.

Write to Nan-Sae Bin at binthere@hankyung.com

In-Soo Nam edited this article.