Kia Motors unveils global expansion strategy for EVs

In a strategic move aimed at meeting the surging demand in the rapidly evolving electric car market, Kia Motors has announced plans to amplify its electric vehicle (EV) production presence from the current two sits in South Korea and China to a global network of eight facilities by 2025. This aggressive expansion initiative seeks to cater to diverse local markets by delivering electric vehicles tailored to regional preferences and accelerating the popularization of Kia’s EV lineup.

At the 2023 Kia EV Day event held at the Mime Vision Village in Yeoju on Thursday, Kia Motors CEO Song Ho-sung unveiled the corporation’s roadmap to have eight electric vehicle production hubs operational by 2024. Presently, Kia is manufacturing the compact electric SUV EV6, the large electric SUV EV9, and the compact Ray mini EV in South Korea, as well as the compact EV5 in China. Kia’s production facilities in the U.S., India, Slovakia, and Mexico are currently dedicated to the production of internal combustion engine vehicles.

Kia’s decision to commence EV production at its overseas plants from 2025 aligns with the overarching vision of the Hyundai Motor Group, which encompasses the establishment of the Singapore Innovation Center, expected to be finalized in 2023, and the Georgia Meta Plant in the U.S., slated for completion in the latter half of 2024.

With a focus on consolidating Korea as a global hub for comprehensive EV development and production oversight, Kia intends to craft local market-specific vehicles in each of its international production centers. In Europe, the company is set to manufacture small- and medium-sized EVs, catering to the preferences of European consumers. Meanwhile, in China, Kia will primarily focus on the production of medium- and large-sized EVs, which are distinguishable from locally manufactured models. In India, where the EV market is in its infancy, Kia’s strategy involves the production of budget-friendly EVs equipped with locally relevant features. As for the production facility in Mexico, the specific vehicle type is yet to be determined.

As Kia Motors aims to assert itself as a prominent player in the ever-competitive EV market, the automaker is ramping up its low-to-medium-priced EV portfolio. Kia’s EV6 and EV9 are seeing alarmingly stagnant demand.

In response to sluggish demand for its current offerings, Kia has introduced an array of concept models, including the EV3, an SUV, and the EV4, a sedan. Additionally, Kia Motors has unveiled the EV5, produced in China. These forthcoming models will be priced in the range of 35,000 to 50,000 U.S. dollars. The launch schedule is as follows: the EV3 in the first half of 2024, the EV4 in the second half of 2024, and the EV5 in the first half of 2025. Notably, the EV5 models manufactured in China will be powered by cost-effective LFP (lithium-iron-phosphate) Blade batteries, while the models produced in South Korea will feature ternary lithium batteries primarily sourced from Korean battery manufacturers.   


hee@donga.com