In 2022, Kia was the fourth largest seller of EVs in the U.S., with a 3.8% market share, ahead of Hyundai but behind Tesla, Ford, and Chevrolet.
During the annual CEO Investor Day presentation, they revealed that they are optimistic about the future of electric vehicles (EVs), which is shared by automakers worldwide, including Japan, Europe, and the U.S. This trend is driven by increasing customer interest, government regulations, and subsidies that encourage EV adoption. Kia believes that the shift towards electrification will help elevate its brand image and perception.
“In 2021, Kia went through a full-scale transformation of its corporate name, logo, product and design, as well as corporate strategy. As a result, our brand value has improved significantly, helping us to win a number of 'Car of the Year' awards in key markets,” said Kia President and CEO Ho Sung Song. “In order to become a Sustainable Mobility Solutions Provider, Kia needs to continue its efforts to strengthen Kia brand identity and establish an innovative and customer-centric business model.”
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Kia expects its global sales to reach 4.3 million vehicles by 2030, which is a 34% increase from its sales target of 3.2 million vehicles for 2023. Kia's corporate strategy includes plans for purpose-built vehicles, with the launch of a midsize PBV fleet vehicle in 2025, and robotaxis with automated driving in the future. Additionally, Kia will offer a high-performance GT trim on all future EV models.
In the first quarter of 2023, Kia's U.S. sales surged 22% to 184,136 vehicles, outpacing the overall market's 8.4% growth. Meanwhile, Kia's worldwide sales increased by 12% to 767,700 vehicles in the same period. Kia aims to achieve growth momentum that surpasses wider market growth through its competitive products and enhanced brand perception, with the sale of electrified vehicles driving its growth. The company will focus on moving higher-trim models, enabling it to achieve higher average vehicle prices and command better margins.
Kia's goal is to increase the contribution of EVs to its overall profit from 5% to 32% by 2026 and 53% by 2030. To achieve this, the company plans to reduce the cost of batteries by 55% by 2030 compared to 2018 prices.
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