Kia unveils $29 bn investment plan over next 5 yrs

Kia unveils $29 bn investment plan over next 5 yrs

최초입력 2025.04.10 11:19:04

(Hyundai Motor/Kia)

South Korean automaker Kia Corp. announced on Wednesday a 42 trillion won ($28.9 billion) investment plan over the next five years. It also set a global sales target of 4.19 million units by 2030.
At its 2025 CEO Investor Day held at the Shilla Hotel in Seoul, the company presented a mid-to-long-term strategy under its Plan S vision to transform into a sustainable mobility solutions provider.
Kia President and CEO Song Ho-sung said the company will continue strengthening its fundamentals and responding proactively to changes in the automotive industry as it carries out its mid- to long-term roadmap for brand advancement.
The five-year investment plan marks an increase of 4 trillion won from the previous year’s projection.
Of the 42 trillion won, 19 trillion won will be allocated to future-focused businesses. The breakdown includes 67 percent for electrification, 9 percent for software-defined vehicles (SDVs), 8 percent for advanced air mobility and robotics, 5 percent for energy, 3 percent for mobility services, and 7 percent for other areas.
Kia revised its 2030 global sales target down to 4.19 million vehicles, from last year’s 4.3 million goal, reflecting a more realistic outlook for the Chinese market. The company aims for a global market share of 4.5 percent.
Eco-friendly vehicle sales are expected to grow from 897,000 units this year to 2.33 million units by 2030. The target includes 1.26 million electric vehicles and 1.07 million hybrid or plug-in hybrid models.
By 2030, the share of eco-friendly vehicles is projected to reach 70 percent in North America, 86 percent in Europe, 73 percent in South Korea, and 43 percent in India.
Kia plans to expand its green lineup from six hybrid and nine electric models this year to 10 hybrid and 15 electric models by 2030.
The company said it will leverage mass-market EVs such as the EV3, EV4, EV5, and the upcoming EV2 in 2026 to overcome stagnant demand and solidify its position as a leading global EV brand.
Kia also plans to roll out its SDV pace car in 2026 with integrated autonomous driving AI, an in-house vehicle operating system, and advanced software. Full-scale production of SDVs is scheduled to begin in 2027.
The company introduced plans for its purpose-built vehicle (PBV) business, targeting the growing commercial EV market.
Kia aims to sell 250,000 PBVs annually by 2030, focusing on Europe and other key markets. The first model, the PV5, will launch in July this year, followed by the PV7 in 2027 and PV9 in 2029.
For 2025, Kia’s financial goals include revenue of 112.5 trillion won, up 4.7 percent from the previous year, and an operating profit of 12.4 trillion won, down 2.4 percent.
The operating margin is expected to decline by 0.8 percentage points to 11 percent.
The company will maintain its shareholder return policy, targeting an annual revenue growth rate above 10 percent, operating margins above 10 percent, and a return on equity above 15 percent. Its cumulative shareholder return rate is projected to reach 35 percent by 2027.
Regarding U.S. tariffs on autos, a company official said Kia has enough margin strength to maintain prices longer than competitors. “However, over time, price adjustments will naturally begin,” the official said.
He added that the company is watching the situation closely while considering expanded local production and global supply shifts.
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Kia unveils $29 bn investment plan over next 5 yrs

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