Kia is following Ford’s example by announcing plans to introduce more hybrids in response to expected slow EV demand. To boost sales and compete with low-cost Chinese rivals, Kia will launch a new lineup of affordable EVs alongside hybrids starting this year.
After a 2% drop in global sales last month, Kia is implementing a new mid-to-long-term business plan. The new strategy, unveiled at Kia’s 2024 CEO Investor Day, focuses on electrification. Kia is pivoting its electric vehicle plans to include a greater emphasis on hybrids and affordable EVs.
Since rebranding in 2021, Kia has made significant changes in its products, design, and marketing efforts.
President of Kia, Song Ho-Sung, stated that the company is effectively responding to market changes with a new strategy. In the face of increased competition and geopolitical uncertainties, Kia is adjusting to the slowdown in EV demand growth by introducing more hybrids and low-cost electric models.
Kia anticipates a slower EV growth rate until 2026 due to a weakening global economy and decreased subsidies.
Kia to strengthen lineup with new hybrids, affordable EVs
The Korean automaker is set to release hybrid versions of its popular models, such as the Carnival HEV introduced last year. Kia’s lineup will include six HEVs this year, eight in 2026, and nine in 2028.
Kia projects hybrids to constitute 12% of global sales, approximately 372,000 units this year. By 2028, the number is expected to climb to 19% with around 800,000 units sold.