"Kia to Establish PBV Business Ecosystem Foundation for Future Industry Transition"

Discovering Potential Customers and Promoting Collaborative Business in the PBV Sector

[Asia Economy Reporter Yoo Hyun-seok] Kia is concretizing its product operation strategy linked to 'brand and eco-friendliness' to promote a future business transformation and is building an ecosystem for the Purpose-Built Vehicle (PBV) business. This is interpreted as a plan to establish a growth model to ensure sustainable growth.

On the 29th, Kia CEO Song Ho-sung stated in his greeting at the regular shareholders' meeting, "This year, the global business environment is entering a stabilization phase from the COVID-19 crisis, and the semiconductor supply disruption for vehicles is expected to gradually resolve in the second half of the year," adding, "Kia sets three strategic directions: future business transformation, customer-centric management, and strengthening fundamental soundness."

Kia plans to accelerate its future business transformation. CEO Song said, "In the PBV sector, we will establish a business ecosystem foundation by discovering potential customers and promoting collaborative businesses," and added, "In the connectivity area, we will refine our strategies and strengthen our capabilities to develop software-based service revenue models."

On the 3rd, during Investor Day held for investors, Kia expressed its determination to become the world leader in the PBV business. Initially, it will pioneer the early market by utilizing derivative PBVs based on mass-produced vehicles. From 2025, when the market is expected to expand significantly, the plan is to introduce various dedicated PBVs to the market.

To focus on customer-centric management, Kia plans to enhance customer experience. CEO Song stated, "We will innovate customer experience based on an omnichannel approach through building a data-driven Customer Relationship Management (CRM) system, expanding digital retailing, and strengthening offline brand customer experiences," emphasizing, "We will establish a sustainable management system through internalizing ESG (Environmental, Social, and Governance) frameworks, improving global evaluations, and establishing a carbon neutrality system."

Kia intends to manage customers who are waiting due to semiconductor supply shortages, securing sales momentum linked to supply normalization, and achieve qualitative sales growth based on market demand.

Overseas market strategies will also be strengthened. CEO Song emphasized, "In advanced markets, we will refine our electrification strategy and build an EV brand image," and added, "In emerging markets, we will establish a foundation for sustainable growth by expanding CKD (Completely Knocked Down) business and prepare for normalization in China."

Kia plans to improve its business structure and strengthen profitability by reducing inefficient and unreasonable fixed costs and establishing an efficient incentive structure. Additionally, through strengthening inventory health, refining plant operations, and operating an optimal EV production system, Kia aims to establish a global supply chain management (SCM) system linked to electrification.

This content was produced with the assistance of AI translation services.