Kia Motors announces ‘Plan S’

Kia Motors Corporation is planning to offer a full line-up of 11 battery electric vehicles by the end of 2025.

Dubbed as ‘Plan S,’ Kia’s new mid to long-term strategy outlines its shift from a business system focused on internal combustion engine vehicles towards electric vehicles and mobility solutions.

Details of Plan S were announced to shareholders, analysts, and credit-rating agencies at Kia’s CEO Investor Day in Seoul on January 15.

Kia is looking to achieve a 6.6% share of the global EV market (excluding China), while also attaining a 25% share of its sales from its eco-friendly cars.

Kia is aiming for 500,000 annual EV sales and global sales of one million eco-friendly vehicles by 2026.

It will also offer EV-based mobility services as part of its new business model to help solve global urban problems such as environmental pollution. It will launch a dedicated BEV model in 2021.

Plan S will see Kia Motors invest 29 trillion won (NZD$37,817,238.84) by the end of 2025 and is targeting a 6% operating profit margin and 10.6% return on equity ratio to secure the necessary capital and maximise shareholder value.

“As the auto industry undergoes turbulent changes, today is also an opportune time for Kia Motors to radically transform itself into a global enterprise dedicated to spearheading customer value-led innovations,” Kia Motors president and chief executive Han-woo Park says.

“Kia Motors will actively innovate to take on the challenges ahead, identifying and capitalising on new opportunities to propel the company forward.

“Plan S is a bold and enterprising roadmap for Kia’s future business transition, buttressed by the two pillars of electric vehicles and mobility solutions. Our approach is to put customers first, and Kia will reinvigorate its brand innovation developing products and services that offer new experiences for customers.”

Kia also plans to develop and release innovate EV models, offering a different kind of product appeal like an EV-specialised design, user experience and quality.