Kia Motors to Inject 29 Trillion Won to its Electric, Purpose-Built Sector

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Kia Motors invests 29 trillion won to its EV and purpose-built vehicle sector.

According to Kia Motors Corporation‘s midterm outline called Plan S, the carmaker will invest 29 trillion won ($25 billion) over the next six years. The company expects the capital injection to strengthen its commitment to moving to eco-friendly cars and the newly emerging purpose-built automotive market.

South Korea’s second-largest car manufacturer and a sister company of Hyundai Motor Group will focus on electric and purpose-built vehicles hoping to achieve an operating margin of 6 percent by 2025.

On Tuesday, Kia Motors shares rose 1.73 percent, ending at 41,150 won ($36).

The company aims to secure the full line-up of its 11 different electric vehicles (EV) models to take hold of 6.6 percent of the global EV market, launching a standalone electric car model next year. The company also projects it will generate 25 percent of its sales from eco-friendly cars in 2025.

The automotive maker will deliver 1 million environmentally-friendly cars as well as 500,000 EVs around the globe from 2026, excluding China.

The company will also concentrate on its purpose-built automobiles for mobility services the automotive industry has been creating. The new market involves specially designed vehicles, mostly electric, for transportation needs like delivery services and ride-sharing. The car manufacturer said it would continually advance both its electric and self-driving based purpose-built cars.

Kia Motors Corp. also said separately on the same day that the company’s flagship Telluride sports utility vehicle was named the 2020 North American Utility Vehicle of the Year.

The company said in a statement that the Telluride was one of three finalists for the award, with Hyundai Motor Co.’s Lincoln Continental’s Aviator and Palisade being the other nominees. It is the third award for the SUV to recently win.

Renowned publication MotorTrend also awarded the Telluride as the 2020 SUV of the Year.

The Telluride is the first Kia vehicle to be exported from the U.S. and sold almost 60,000 Telluride units across North America since its debut in February last year.

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KOREATECH TODAY, A NEWS PLATFORM FOR KOREAN TECH WITH A FOCUS ON INDUSTRY NEWS AND PROMISING PROJECTS.

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