Kia launches 7 exclusive electric vehicles by 2026… Maintain 25~30% dividend payout ratio

Input 2021.02.09 15:00

Kia(Kia Motors (000270)) Is speeding up the transition to electrification by releasing seven exclusive electric vehicles by 2026 and selling 1.6 million eco-friendly vehicles annually by 2030. Next year, the first model of purpose-based mobility (PBV) will be released. In addition, Kia plans to achieve an operating margin of 7.9% by investing 29 trillion won in future businesses by 2025.

On the 9th, Kia held the’CEO Investor Day’ through its YouTube channel and revealed the three core businesses, detailed strategies, and mid- to long-term financial and investment goals of the electrification strategy’Plan S’. Kia President Song Ho-sung said, “The core of Plan S is the rebirth of mobility.” Furthermore, it will establish itself as a brand that provides innovative mobility experiences to customers.”

First of all, Kia presented three core businesses, such as ▲ concrete conversion of electric vehicles (EV) ▲ enhancement of PBV business capabilities ▲ expansion of mobility business.

In response to changes in the electric vehicle market, it plans to sell 1.6 million environmental vehicles annually by 2030 and increase the proportion of environmental vehicles to 40% of the total sales. In particular, electric vehicles aim to sell more than 880,000 units a year in 2030.

Until last year, Kia has only launched derivative electric vehicles based on internal combustion engine models. However, starting this year, the exclusive electric vehicle lineup will be strengthened starting with’CV’. Initially, Kia had a plan to release 7 exclusive electric vehicles by 2027, but it is planning to advance this goal by one year. Accordingly, in 2026, a full lineup of 11 electric vehicles will be established along with 4 derivative electric vehicles.

The CV, which is scheduled to be released for the first time in the world in March, will be equipped with HDA2 (Highway Driving Assist 2) technology, which is the second phase of autonomous driving technology, and the third phase autonomous driving technology HDP (Highway Driving Pilot) for exclusive electric vehicles to be released in 2023. Is planned to be applied.

President Song said, “The differentiating point of CV is ‘5/4/3’.” It is planning to achieve a driving distance of 500km on a single charge, a driving distance of 100km on a 4-minute charge, and a zero-back 3 seconds. It will be released in the domestic market in July.

Kia will launch its first PBV model, the PBV01, in 2022. PVB specialized for cargo loading, and PVB specialized for vehicle and leisure are also released sequentially. PVB is a customized vehicle that combines various vehicle bodies based on a skateboard platform, and Kia recently Hyundai Motor (005380)· Kia announced that it will develop a vehicle with the British commercial electric vehicle specialist’Arrival’. In particular, he said that he would actively utilize the special design capabilities and production lines that he had acquired through 48 years of experience in military vehicle development.

Regarding the mobility business, Kia plans to expand the car-sharing service’Webble’, which is being operated for individual customers in Madrid, Spain, to corporate and point-type services this year. Kia Mobility Service, which was only operating in Italy and Russia, will also be launched in four European countries this year. It will also introduce a subscription and sharing service based on electric vehicles.

It also announced this year’s business plans and financial goals. Kia set a goal to sell 2922,000 units (based on wholesale sales), an increase of 12% year-on-year in the global market this year, and achieve a 3.7% market share in the global automobile market.

Considering the increase in sales of recreational vehicles (RVs), the operating profit margin target (5% in 2022 and 6% in 2025) was raised to 6.7% in 2022 and 7.9% in 2025.

Kia plans to invest a total of 29 trillion won by 2025, and instead of reducing its investment in the existing business sector by 1 trillion won, it plans to invest in strengthening core future technology competitiveness such as autonomous driving, hydrogen, and urban aviation mobility (UAM). In addition, it announced that it will maintain a dividend payout ratio of 25-30% in the short term and raise the return on equity (ROE) to 10%, which is the level of the global top group, to achieve 12.8% in 2025.