Kia will invest 26 billion euros in mobility solutions

The second largest car manufacturer in South Korea Kia Corp. announced on Friday its intention to invest 38,000 billion won (about 26 billion euros) for five years until 2028 to create future mobility solutions.

The company will also increase its hybrid car offerings as sales of electric cars decline, Yonhap news agency reported, adding that planned spending was revised down from the 33 trillion won announced for the previous year.

About 15 trillion won, or about 40 percent of the total package, will be allocated to the development of electric vehicles, special purpose vehicles, advanced space mobility and robotics projects, the company said at this year’s CEO Investor Day this one.

Kia expects to see sales of electric vehicles decline further this year due to the economic slowdown, cuts in government subsidies, lack of charging infrastructure and risks of battery fires. To cope with this change, the company plans to increase the number of hybrid models in the coming years.

Its sales targets for 2024 are set at 3.2 million vehicles, including 307,000 electric vehicles, which represents growth compared to the 3.08 million sales achieved last year.

The manufacturer plans to bring 15 new types of electric vehicles to the market by 2027 and expects to reach 1.6 million units sold worldwide in this niche sector by 2030.

And MAP