KIA will allocate $ 25 billion for electric cars and autopilot

KIA will allocate $ 25 billion for electric cars and autopilot

January 15, 2020 0 By autotimesnews

The Korean automaker presented at the Investor Day in Seoul a new strategic development plan until 2025. According to this document, the brand is going to move away from the current business model, focusing on electric cars and mobile services.

KIA is preparing to reformat its production. A global development plan has already been drawn up, and the closest point in it is the release of a key model in 2021, as well as the expansion of the prayer line of electric cars. A new development strategy is planned until 2025, by this time in the KIA model line should be 11 electric vehicles, providing 6.6% of global demand. Annual sales of such cars should exceed the mark of 500,000 copies. For environmentally friendly models, the bar is even higher – 1 million pieces.

At the same time, the automaker relies on the markets of developed countries. Developing countries will receive electric cars selectively, while KIA models with internal combustion engines will remain the main ones here.

 Another direction the brand will focus on is the expansion of mobile services in megacities and the development of autopilot systems. The company is ready to spend $ 25 billion on the implementation of the plan. The expected operating profit from this project is at least 6%, return on equity is at least 10.6%. The brand will begin to implement a plan that will help KIA establish itself in the electric car market in the second half of 2020.

Meanwhile, Tesla received 1.4 billion investment from Chinese banks. The money will go towards developing the new Gigafactory factory in Shanghai, as well as promoting the brand itself in this market.