The Global automotive industry is going through a remarkable face shift, Tesla, despite being an automaker rather than an easily scalable business like web steaming or social networking site, being the most profitable company during the pandemic period is a great sign that the industry is going under huge changes.
For a long period of time, the automotive industry was pretty stagnant in its growth compared with other industries such as airlines or telecommunications industries.
The automotive industry was and to a great extent still powered by 2 stroke or 4 stroke diesel or gasoline engines which powered the Ford Model T in 1908 and
- The industry was following the Ford or the Toyota model management principles for their operations and development of new vehicles.
- The automotive industry having manufacturing processes as the back born of the industry emphasizes on efficiency in production.
The great transition
Now the equation has changed drastically since the Silicon Valley companies such as Tesla, Apple, Google etc.. started to invest hugely in the automotive industry.
In this newly change environment and this huge competition, all the big guys are revisiting their game plan for the coming decade. With the help of modern technologies like Artificial intelligence and cloud-based systems efficiency of the industry is being increased drastically.
In this present scenario, it’s more important to be adaptable rather than being efficient to stay alive and thrive in a highly competitive industry.
KIA’s Game plan to Dominate the Global market
In order to thrive in this environment the South Korean automaker KIA previously known as KIA Motors has an elaborate business plan for the coming decade.
They have planned to have 11 EV models by the year 2026. In this post let’s explore the promises KIA gives especially for the Indian automotive industry.
At an event at the company’s Hwasung plant in Korea, Kia Motors President and CEO Ho Sung Song outlined the next six years of Kia’s EV strategy.
- The South Korean automaker was ‘reborn’ with a new logo and brand identity that will concentrate on ‘the entire mobility ecosystem’
- Beginning with a transition from internal combustion engines to electric vehicles
- KIA already has two electric versions of their gasoline-powered vehicles the Soul EV and the Niro EV
- The company is planning to expand its EV lineup by adding 4 more cars by 2026.
The long term plan
Kia will strengthen its EV line-up by 2026 with 11 new models – seven dedicated EVs built on the Electric-Global Modular Platform (E-GMP) architecture, and 4 based on existing ICE derivatives.
The first dedicated EV from Kia, codenamed CV, will be featured with HDA2 (Highway Driving Assist Level 2) technology.
Starting in 2023, Kia EVs will be equipped with Highway Driving Pilot (HDP), a crucial autonomous driving Level 3 development.
Each of the new models will feature EV-specific designs and a new user interface “designed to make it even easier for them to live daily.”. Depending on the model, Kia’s EVs will have either 400V or 800V charging power.
The automaker targets 300 miles of range and a 20-minute partial recharge period. More information will be unveiled in the near future.
Before going further let us talk a bit about E-GMP.
The Hyundai E-GMP employs a modern, lightweight Power Electric (PE) system optimized for use with different body types.
- A liquid-cooled battery pack between the front and rear axles, an inverter fitted with semiconductors of silicon carbide, and an integrated drive axle with an oil-cooled electric motor turning the rear wheels are included in the PE System.
- There is a second electric motor available, powering the front wheels and providing an all-wheel-drive electric system that can be turned on and off by drivers.
This being a highly adaptive platform for a wide range of EV’s KIA can save a lot of time and money on the design of a new platform for each of their vehicles.
“Today our front-wheel driven Hyundai and Kia BEVs are already among the most efficient ones in their segments. With our rear-wheel driven based E-GMP, we are extending ourAlbert Biermann
technological leadership into segments where customers demand excellent driving dynamics
and outstanding efficiency.”
President and Head of R&D Division for Hyundai Motor Group
KIA Plans To Expand Their Presence in Purpose-Built-Vehicle (PBV) Market
By expanding into autonomous delivery vehicles, Kia is also looking to increase its purpose-built-vehicle (PBV) business. Kia will launch the first electric PBV in 2022 and plans to sell one million of these vehicle models by 2030 by partnering with other companies to build platforms for them.
In 2022, Kia will unveil its first purpose-built vehicle (PBV), with additional PBVs to be launched in line with market needs. To become a global leader in PBVs, the company is targeting annual sales of 1 million units by 2030.
To this end, based on its PBV-dedicated skateboard platforms, Kia will build a range of customized vehicles.
By co-operating with other businesses to develop micro/large board platforms for unmanned distribution and e-commerce sectors, Kia aims to further expand its PBV business through open innovation.
The company expects market appetite for these services to grow internationally, the company will also advance its own highly scalable small board platforms and technologies.
KIA’s Business model for the Global market
KIA’s goal is that, with a target of 1.6 million vehicles sold, EVs, hybrids, and plug-in hybrids will make up 40 percent of all its sales by 2030.
The company said it expects 880,000 of those will be EVs which means the company plans to expand its EV market by almost 50 percent of its total market share.
All being said KIA’s detailed vehicle line-up and the specifications, pricing, availability, etc.. all are yet to be public.
KIA’s Plan for India
With its 2 billion $ state of the art manufacturing plant with a capacity of 3,00,000 units annually in Anandpur, Andra Pradesh combined with the Great Indian automotive market, India has the opportunity to become one of KIA’s most profitable operations globally which in turn will give India a safe reliable line of an eco-friendly vehicle line up, making Indian
market more dynamic and vibrant than ever.
At present there are only three models from KIA is available in India they are conventional IC engine-operated vehicles.
Once the Anandpur plant is in full swing and the company gets a good hold of the Indian market we can expect the Indian versions of KIA’s EV line-up in the near future.
- South Korean automaker KIA is embracing the shift in the global automotive industry
- With their elaborated business plan in Electric vehicles, they have the potential to dominate the electric vehicle market
- With Hyundai’s highly adaptable E-GMP KIA can save a lot of money and resources on the development of platforms for each of its models
- KIA aims not only in the passenger EV market they have an elaborate plan on dominating the PBV market
- With the ‘yet to be ‘ revealed partner on setting up charging points KIA is planning to resolve the problem of inadequate charging points which almost all the electric vehicle companies have to face.