Kia to invest 38 trillion won in future mobility solutions by 2028

Kia Corp., South Korea's second-largest vehicle maker, recently said it will invest 38 trillion won ($28 billion) in future mobility solutions by 2028, while bolstering its range of gasoline-powered hybrid vehicles amid declining demand. sales of electric vehicles (EV).

The planned investment over the next five years is adjusted upwards from the 33 trillion won ($24.4 billion) announced last year.

Kia said during this year's CEO and Investor Day that it will inject 15 trillion won ($11.1 billion), or nearly 40 percent of its overall spending, into the development of EVs, purpose-built vehicles (PBVs). , according to its acronym in English), advanced air mobility (AAM) and robotics.

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The company expects EV sales growth to slow further this year due to the economic slowdown, reduction of government subsidiesthe lack of electric stations and the potential fire risks.

To cope with declining demand for EVs, maker of the K5 sedans and Sorento sport utility vehicles (SUVs) Kia will increase the number of gasoline-hybrid models in its lineup over the next few years. It aims to sell 3.2 million vehicles, including 307,000 EVs this year, up from 3.08 million units sold last year. Likewise, it plans to launch 15 EVs by 2027 and sell 1.6 million EV units in global markets in 2030.