South Korean carmaker, Kia Motors on Tuesday announced plans to invest $25 billion in new electric vehicles and business diversification worldwide in the next six years.
Kia is also adding its K5 sedan and Sorento SUV to the existing electric models Niro and Soul, with the aim to achieve 6.6 per cent pie of the global EV market by 2025, from the current 2 per cent.
According to Agency Reports, Kia Motors made the announcement as it aims to transform itself into a leading electric vehicle manufacturer while reducing the ratio of combustion engine vehicles it makes.
Speaking at an investor session in Seoul, Kia Chief Executive and President Park Han-woo explained that the company is taking a bold and preemptive transition in business portfolio.
“We are not simply adapting to changes in the automobile market but adopting innovation to make a leap forward to become a leading player (in next-generation vehicles) through a bold and preemptive transition in business portfolio,” Kia Chief Executive and President Park Han-woo.
With this investment, the automaker is targeting to expand its portfolio of all-electric models from the current two to 11 within six years of time span, Yonhap News Agency reported.
South Korean news agency reports that the company will focus on the domestic market and advanced markets such as the U.S. and Europe, while selectively launching EV models in emerging markets due to a lack of charging infrastructure and subsidies.
It also targets to sell 500,000 electric vehicle and 1 million environmentally friendly vehicles in global markets outside China in 2026.
