Kia is following in Ford’s footsteps after suddenly announcing plans to introduce more hybrids as it expects slower EV demand. To boost sales and fend off low-cost Chinese rivals, Kia will introduce a new lineup of affordable EVs in addition to hybrids starting this year.
After global sales slipped 2% last month, Kia is shaking things up with a new mid-to-long-term business plan.
The new strategy, revealed at Kia’s 2024 CEO Investor Day on Friday, is centered around electrification. Kia announced that it is shifting its electric vehicle plans to include more hybrids and affordable EVs.
Since its major re-brand in 2021, Kia has made noticeable changes in its products, design, and marketing efforts.
Kia’s president, Song Ho-Sung, announced Friday that “We are responding effectively to changes in the automobile market” with a new mid-to-long-term strategy.
The company is actively responding to changes in the market with increased competition and geopolitical uncertainties. In response to “the slowdown in EV demand growth,” Kia plans to launch more hybrids while introducing new low-cost electric models.
Kia expects the EV growth rate will be slower than expected from now until 2026 due to a deteriorating global economy and decreased subsidies.
Kia to strengthen lineup with new hybrids, affordable EVs
The Korean automaker is launching hybrid versions of its most popular models, like the Carnival HEV, launched last year. Kia plans to have six HEVs in its lineup this year, eight in 2026, and nine in 2028.
With the new models, Kia expects hybrids to account for 12% of global sales, or around 372,000 units this year. In 2028, Kia expects the number to rise to 19% of sales, with around 800,000 units sold.
Kia is not abandoning fully electric cars. It plans to boost demand by launching a series of new affordable EVs.
Kia will introduce six affordable EVs in major markets, including North America, Korea, and Europe. These will include the EV2, EV3, EV4, and EV5, revealed during Kia EV Day in October.
The new EVs are part of Kia’s wide-ranging lineup covering nearly all segments with prices between $30,000 and $80,000.
Kia expects sales of its low-cost EV models to reach 131,000 this year (43% of EV sales), 263,000 in 2025 (55% of EV sales), and 587,000 in 2026, or 66% of total electric car sales.
Kia already launched the EV5 in China with starting prices of around $20,000 (149,800 yuan), undercutting much of the competition. In Australia, it’s expected to start at around $46,000 (AUD 70,000).
The EV3 is expected to launch this year (If not early 2025) starting at around $30,000 as the brand’s “vision of an all-electric compact crossover.” It takes much of the tech and design of its flagship EV9 and puts it into a smaller, more affordable package.
Kia’s EV4, an entry-level electric sedan, is expected to follow next year with starting prices around $35,000.
Two of Kia’s dedicated EV factories in Korea are expanding production of low-cost models as the brand looks to fend off low-cost Chinese rivals like BYD.
Kia expects overall EV sales to reach 307,000 this year, 1.147 million in 2027, and 1.6 million in 2030. The brand will continue advancing battery tech to improve the range and energy density of its vehicles.
Electrek’s Take
Kia is following Ford (and several others), which announced plans to delay its three-row electric SUV this week. Like Kia, Ford is looking to fill the gap with hybrids and affordable EVs.
However, Ford’s new low-cost electric vehicles will not be available until 2026. They are expected to include a smaller electric pickup and SUV, starting at around $25,000.
Kia already has an affordable EV and is expected to launch several more by 2026. The Korean automaker also introduced a three-row electric SUV to the market with the EV9.
In the US, Kia EV9 sales topped 4,000 in the first three months of 2024 after launching late last year. The EV9 starts at under $55,000 and has more rear legroom than the Cadillac Escalade and Range Rover P400 3-row, both of which cost over $80,000.
The shift to hybrids and lower-cost EVs comes as Kia sees global economic conditions deteriorating. Kia is still planning to transition to EVs, but due to the global economy, the automaker sees demand for EVs slowing over the next two years. It believes lower-cost models will help fill in the gap.
FTC: We use income earning auto affiliate links.More.
Is this the Ford F-150 Lightning rival we’ve been waiting for? The first Kia electric pickup was spotted testing in the US as the brand gears up for an EV offensive.
Kia has already confirmed it will launch an electric truck in the US. During its investor day in 2022, Kia revealed plans to launch two electric pickup trucks: one dedicated EV pickup and the other a strategic model for emerging markets.
The electric trucks are part of Kia’s plan to launch two EVs a year and build a complete lineup by 2027.
Kia confirmed in the US, where mid-size SUVs and pickups are popular, “electric versions of these models will be produced locally from 2024.”
After launching its EV9 late last year, the larger electric SUV is already off to a hot start. With a record 1,572 EV9s sold in April, the electric SUV pushed Kia to a new monthly EV sales record, up 144% YOY.
Kia is offering a $7,500 Customer Cash credit, which can amount to $12,400 in savings until US production begins. Meanwhile, Kia is expected to start building the EV9 at its West Point, GA facility this month.
Kia is testing a mysterious electric pickup in the US
Is a new Kia electric pickup set to follow? For the first time, Kia’s EV pickup was spotted testing in the US.
The video from KindelAuto shows a larger-looking pickup with a bold face, similar to the Ford F-150 Lightning. You can clearly see design features pulled from the rugged, big-body EV9.
On the back end, you can see the test model is fitted with lights similar to the Hyundai Santa Cruz. These will likely be updated in the production version.
It will likely include several new Kia design elements, like its new signature “Digital Tiger Face” grille, replacing its old “Tiger Nose” design.
Kia’s new EV will join a growing US electric pickup market with the Tesla Cybertruck, Rivian R1T, Ford F-150 Lightning, and Chevy Silverado EV.
Although Kia has yet to confirm specs, it’s expected to ride on Hyundai’s next-gen EV platform, which is expected to boost range (the EV9 gets up to 304 miles EPA-est range) while slashing costs (the EV9 starts at $54,900).
If you can’t wait for Kia’s electric pickup, Kia is offering massive savings of up to $12,400 on select EV9 models. You can use our link to view deals on the 2024 Kia EV9 at a dealer near you.
FTC: We use income earning auto affiliate links.More.
Volvo Construction Equipment (CE) is putting data at the heart of its decarbonization efforts as it invests in advanced telematics and beefs up its carbon footprint reporting.
“VizaLogix provides brand-neutral SaaS solutions that are easy to integrate and use, helping fleets, dealers and OEMs make smarter decisions,” said Scott Young, head of region North America, Volvo, in a statement. “Volvo recognizes that services are growing to be just as important to fleets as their machines, and our investment in VizaLogix extends our commitment. It’s by combining the right machine with the right services that users get the best solution for their needs.”
The PCF reports released by Volvo confirm that electric machines are a more sustainable choice compared to conventional, diesel-powered machines (which, it should be noted, Volvo also sells — and at a higher per-unit profit than EVs). The reports look at a vehicle’s greenhouse gas emissions throughout its projected life cycle, and cover all steps from the extraction of raw materials, component manufacturing and machine assembly, through to battery recycling and end-of-life salvage. The principles of the methodology are based on both the global ISO standard for Life Cycle Assessment and the Greenhouse Gas Protocol.
“Customers are now rightly looking with absolute scrutiny at carbon performance – on a par with other considerations like cost and quality,” says Rickard Alm, Head of the Life Cycle Assessment (LCA) program at Volvo CE. “With our Product Carbon Footprint reports, we are making it easier to have quick access to the information needed and enabling them to act on their decarbonization ambitions.”
As for VizaLogix, their acquisition is going to enhance not just Volvo CE’s reporting, but their ability to support their machines in the field and, ultimately, keep them running longer. The company’s products enable support for mixed fleets and mixed data connections, including:
Vantage Point: a mining app that provides real-time data on crucial site metrics like idle times, cycle counts, and tonnage delivered
TethrIT Now: a real-time collaboration tool that works over multiple channels, allowing augmented reality video calls that featuring helpful overlays that let users visually point, highlight, or mark areas of focus for technicians on either end of the call
TechnicianNow: it’s telehealth for your equipment, enabling a technician to troubleshoot and diagnose machines through a mobile app that connects them with real-time parts availability to give fleet managers a comprehensive understanding of what’s happening, why, and when it will be fixed
Moving forward, the information gathered with these digital tools will help inform parts purchasing and technician training, and ultimately help build confidence in electric equipment — a crucial step in convincing fleet operators to buy electric.
Electrek’s Take
Volvo is serious about decarbonization and sustainability, and they’re pushing hard to have electric options in all their CE product lines.
Honda is done standing by while rivals like Tesla and BYD steal market share. To stay competitive, Honda is doubling its investment in EVs to $65 billion (10 trillion yen) through 2030. The plans include slashing costs and launching seven new electric models.
Honda doubles its investment in EVs to $65 billion
CEO Toshihiro Mibe laid out the automaker’s new strategy Thursday, claiming Honda has not “changed its belief that EVs are the most effective solution.”
Honda believes it can compete in the small electric vehicle and motorbike segment. In the long term, Honda is confident that EV adoption will continue to rise. The company wants to take advantage of the “period of EV popularization,” which will happen in the second half of the 2020s.
To do so, Honda will introduce new EVs, establish a comprehensive supply chain (including batteries), and advance EV technology and facilities.
Through its new strategy, Honda aims for a 5% return on sales for its EV business in 2030, aiming to make it self-sustaining.
Honda’s new 0 series is expected to play a key role. Two new concepts, the Saloon and Space-Hub, were unveiled at CES in January.
The Saloon is set to become Honda’s new flagship EV with a model very similar to the concept launching in 2026. It will launch in North America first ahead of its global rollout.
Following the Saloon, Honda plans to launch seven EV models globally, from small to large. In China, Honda will introduce ten new EVs by 2027, representing 100% of auto sales in the region by 2035. It also unveiled its new “Ye Series” EVs to take on Chinese automakers like BYD.
Honda will launch a series of smaller EVs, starting with the N-Van e, a commercial mini EV. After it goes on sale in Japan this fall, Honda will introduce a series of small-size EVs in the region where needed. This will include personal mini-EV models in 2025.
Building an EV supply chain for the future
Regarding its supply chain, Honda will start by strengthening its partnerships for lithium-ion batteries while holding costs down. Starting in mid-2020, Honda will begin producing batteries with its JV partners.
In the US, Honda’s JV plant with LG Energy Solution will begin production with up to 40 GWh battery capacity annually. The lightweight and compact battery packs will be used for its 0 series EVs.
In the second half of the decade, Honda plans to further expand its battery business by building a vertically-integrated supply chain.
To do so, Honda will begin in-house production with GS Yuasa for EV batteries. Honda also plans to secure battery materials in Canada, like cathode materials from POSCO Future M and separators from Kasei at new JV plants.
By 2030, Honda aims to reduce the cost of EV batteries built in North America by over 20% compared to current costs. Honda already has enough secured to produce around 2 million EVs planned in 2030.
Honda aims for EVs and FCEVs to account for 40% of global auto sales in 2030 and 100% by 2040.
Electrek’s Take
Despite the recent “EV slowdown” the media continues to report, several automakers are increasing their investments now as they look toward the future.
Honda is the latest, joining Toyota, which has made a series of investments in new EVs, including a large electric SUV for the US and next-gen battery tech.
Although Japanese automakers have been laggards in the industry’s transition to EVs so far, with Ford, GM, VW, and others pulling back, could they turn things around? That’s what Honda (and Toyota) hope for with new investments in EVs.
Meanwhile, Honda and Toyota’s EV sales share is currently well under that of their rivals. While Toyota’s EV sales share is around 1%, many automakers are already achieving double-digit or 100% EV sales.
Will the new investments be enough? Drop us a comment below to let us know your thoughts.
FTC: We use income earning auto affiliate links.More.