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Kia Motors: Kia Motors plans $25 billion investment in future mobility in 6 years, Auto News, ET Auto

New Delhi: South Korean carmaker Kia Motors on Tuesday announced its plans to invest US $25 billion (29 trillion won) in electric vehicles and business diversification worldwide in the next six years.

Beyond its existing electric models Niro and Soul, the company aiming to expand its EV portfolio to K5 sedan and the Sorento sport utility vehicle to achieve 6.6 per cent of the global EV market by 2025, as per a South Korean news agency. At present, Kia claims to have 2 per cent market share in global EV space.

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, according to Yonhap News Agency.

During an investor session in Seoul Kia Chief Executive and President Park Han-woo said 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.

As per the South Korean news agency, 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.

Besides, the company is also eyeing for a 5 per cent operating profit margin in 2022 and incre ase it to 6 per cent in 2025 by advancing to new businesses including purpose-built vehicle (PBVs) services and mobility services based on EVs and autonomous vehicles, the agency mentioned.

(With inputs from: Yonhap News Agency)

Source: auto.economictimes.indiatimes.com