Kia to Manufacture Coupang Exclusive Delivery Vehicles

by Choi Daeyul

Published 15 Apr.2022 08:58(KST)

No Jae-guk, Head of Logistics Policy at Coupang (left), and Kim Sang-dae, Head of eLCV Business Division at Kia, are posing for a commemorative photo after signing a business agreement MOU at Kia headquarters in Yangjae-dong on the 13th.

[Asia Economy Reporter Choi Dae-yeol] Kia has decided to manufacture logistics and distribution delivery vehicles used by Coupang. For Kia, which is diversifying its business related to Purpose Built Vehicles (PBV) such as cargo trucks and taxis, it is expected to build business capabilities together with Coupang, which has a significant influence in the e-commerce market.

Kia and Coupang announced on the 15th that they recently signed a business agreement for a PBV business project. According to this agreement, they will jointly conduct PBV-linked demonstration projects to provide solutions or services needed in the logistics and distribution market. Based on this, they plan to jointly develop Coupang-exclusive PBVs and release them around 2025. PBV is a method that allows customized production according to the purpose of use on a vehicle platform similar to a skateboard. They decided to create exclusive vehicles in medium and large sizes tailored to Coupang's business model.

Earlier last month, Kia announced at the CEO Investor Day its goal to enter the global PBV market and become the world's number one by 2030. This agreement is the first concrete step with an external partner. Since Coupang is considered a leading player in the domestic logistics and distribution market, it is expected to present specific specifications and requirements to efficiently improve the delivery environment. Kia plans to propose not only vehicles but also various solutions and services.

Specifically, it is anticipated that they will provide consulting to reduce safety accidents or improve the delivery environment for Coupang delivery workers, and propose charging infrastructure solutions for efficient operation of electric vehicles. The two sides also foresee developing electric devices that can be connected between vehicles and integrating autonomous driving technology.

A Kia official said, "We will secure competitiveness in the PBV business by providing specialized vehicles and customized solutions to various global logistics and distribution PBV customers in the future."