Kia, the South Korean automaker, has announced its intention to significantly increase sales of electric vehicles (EVs) after recording its highest-ever annual profit. The company is aiming to achieve a 40% increase in global sales of eco-friendly vehicles, including hybrid, plug-in hybrid, and battery-electric vehicles, by 2030.
Kia achieved an annual profit of $4.6 billion in 2021, a 177% increase from the previous year, due to strong demand for its SUVs and EVs. The company’s EV sales in 2021 increased by more than 220% compared to the previous year.
Kia’s parent company, Hyundai Motor Group, plans to invest $87 billion over the next five years to develop and produce EVs, including hydrogen fuel cell vehicles. Kia is set to play a significant role in the group’s electrification strategy, with plans to launch seven new EV models by 2027.
The company is also planning to develop a dedicated EV platform called the Electric-Global Modular Platform (E-GMP), which will underpin all of its new EV models. The E-GMP platform is designed to support fast-charging capabilities and provide longer driving ranges.
Kia’s EV sales target is part of a wider plan to achieve carbon neutrality by 2050. The company plans to reduce its carbon emissions by 25% by 2025 and has set a goal to use 30% recycled plastic in its vehicle interiors by 2025.
However, achieving Kia’s ambitious EV sales target may be challenging. The company faces tough competition from established EV makers such as Tesla, as well as other automakers such as Volkswagen, which plans to invest $86 billion in EV development over the next five years. Kia will need to invest heavily in EV technology and marketing to achieve its sales target.
The increasing demand for EVs is driven by concerns about climate change and the need to reduce greenhouse gas emissions. Governments around the world are also implementing policies to incentivize the adoption of EVs, such as tax breaks and subsidies for EV buyers.
Kia’s commitment to boosting its EV sales is a positive step towards a greener future. The company’s success in the EV market will not only depend on its investment in technology and marketing but also on the support of governments and consumers.
In conclusion, Kia’s announcement to significantly increase sales of EVs is a clear indication of the company’s commitment to a sustainable future. With the support of its parent company and its investment in new EV models and platforms, Kia is well-positioned to achieve its ambitious sales target. The success of the company’s strategy will depend on its ability to compete with established EV makers and its ability to convince consumers to adopt EVs as their preferred mode of transportation.
