TOKYO – Kia plans to ramp up its hybrid vehicle offerings amid softening and uncertain demand for full-electric vehicles so it can secure “maximum flexibility” in its lineup.
The automaker will build its portfolio of gasoline-electric hybrid offerings to nine models in 2028, from six in 2024, and add hybrid options on most of its major nameplates.
Kia CEO Ho Sung Song outlined the strategy at this month’s CEO Investor Day presentation.
“While the long-term EV demand for 2030 is expected to remain unchanged, the pace of demand growth may prove uneven in the near term,” Kia said in a news release on April 5 after the annual business strategy update in Seoul, South Korea.
“To respond agilely to changes in the market environment, Kia will secure maximum flexibility in its line-up operation.”
Weaker global economic growth, a reduction of EV subsidies and slower adaption of charging infrastructure were factors sapping momentum from global EV demand, Kia said.
Kia said it will enhance its “HEV line-up to manage fluctuation in EV demand.”
Kerrigan Advisors recently represented Atlanta-based Lou Sobh Automotive Group in the sale of Kia of Cerritos, the #2 volume Kia dealership in the US to Trophy Automotive Dealer Group. With this transaction, Kerrigan Advisors has represented five of the top 15 volume Kia stores nationwide, reinforcing the firm’s position as the leading sell-side advisor to high-value dealerships.
Kia kept is 2030 sales top-line goals unchanged at total global volume of 4.3 million units, with pure EVs account for about 1.6 million vehicles of that total.
But Song slightly upped the long-term hybrid mix.
The new goal is selling 2.48 million full electric and hybrid vehicles in 2030, that is up from the target of 2.38 million issued at last year’s Investor Day. Under the new target, electrified vehicles, including plug-in and standard hybrids, would account for about 58 percent of 2030 sales.
Kia said it would expand its hybrid lineup to six models in 2024, eight in 2026 and nine in 2028.
In the U.S., Kia already offers hybrid versions of its Niro, Sportage and Sorento crossovers, including plug-in hybrid versions of the Sportage and Sorento.
Its EV offerings in the U.S. include the Niro EV, EV6 hatchback and EV9 crossover.
Kia’s dial up of hybrids come as global automakers take a new look at adding gasoline-electric offerings amid slowing growth in EV demand.
Japanese automakers, led by Toyota and Honda, have seen U.S. sales increase on the back of robust hybrid sales as customers concerned about the high price and limited charging infrastructure for EVs seek other fuel-efficient options.
Even as automakers plan to launch dozens of new EVs in the coming years, the percentage of consumers considering an EV is shrinking, according to two new surveys.
Nearly a quarter of car shoppers, or 23 percent, said they dislike EVs, according to one study by Edmunds in January. That figure rose from 19 percent in April 2023, the last time Edmunds asked.
Meanwhile, another study by J.D. Power also found declining interest. The percentage of consumers saying they are very likely to consider an EV for their next car declined in February for the fourth straight month to 24 percent, according to J.D. Power's report.
The share of consumers who said they are very unlikely to consider an EV rose to more than 22 percent from about 19 percent a year earlier.
Ford is among the companies tweaking its approach.
The U.S. automaker said earlier this month it is delaying plans for a new electric pickup and three-row electric utilities amid slowing growth in EV sales. At the same time, it plans to roll out hybrid variants on each gasoline-powered vehicle in its lineup by the end of the decade.
Song reiterated his company’s commitment to EVs in the long term.
On tap is a global range of new EVs, including the EV2, EV3, EV4 and EV5. Kia plans to launch six EV models by 2026, the company said.
The rollout starts with the EV3 subcompact crossover this year, followed by the others in major markets, including the U.S., Europe and South Korea.
Among them, the EV3 and EV4 subcompact sedan are expected to land Stateside.
The company will also start producing EVs and internal combustion vehicles at 13 factories worldwide, Song said. Six of those plants will be overseas.
Kia said the roadmap enables Kia to “proactively respond” to “changes in EV market.”
