Kia digs deep into the Chinese market to accelerate electrification transformation
In 2024, competition in the global automobile industry will be fierce, and industrial transformation and price wars will drive accelerated changes in the industry.
2024 is the 80th anniversary of Kia. At a time when the global automotive industry chain and competitive landscape are in a critical period of restructuring, Kia has still delivered a satisfactory answer: Hyundai Motor Kia has become the world's third largest automobile group for two consecutive years; in the first quarter of 2024, Kia's global sales reached 760,515 vehicles, revenue reached 26.21 trillion won, operating profit was 3.43 trillion won, a year-on-year increase of 32.5%, and operating profit margin reached 13.1%, setting the highest single-quarter operating profit and operating profit margin in history. In addition, thanks to the rising global market demand for new energy models, global sales of Kia's electrified models increased by 18.1% year-on-year to 157,355 units.
Achieving excellent results globally requires correct strategic decisions. At the same time, Kia has always regarded China as the most important market in the world. Relying on its core strategy, Kia's strong momentum in the global market can continue in the Chinese market. From January to April this year, Yueda Kia sold a total of 69,848 units, a year-on-year increase of 83.2%; the cumulative vehicle production was 66,560 units, a year-on-year increase of 203.9%. In April, Yueda Kia's sales reached 19,810 units, a year-on-year increase of 101.4%, and a month-on-month increase of 6.1%. In April, vehicle production reached 20,760 units, a year-on-year increase of 188.3%, and a month-on-month increase of 11.6%, continuing the booming production and sales since the beginning of the year. trend.
Kia's double success globally and in China is due to its early start in electrification transformation in China. "Ensuring success in the Chinese market is the core of Kia's global strategy." Kia Global CEO Song Husheng said. Kia has always implemented the "in China, for China" strategy and unswervingly explored the domestic market.
The Beijing Auto Show has just passed, and the Kia booth was bustling with excitement and many highlights: Kia unveiled new electrification technologies, new products, and an all-star lineup. Kia EV5 and EV6 even shone at the auto show, demonstrating the latest results of the brand's electrification transformation.
As a global model specially launched by Kia to celebrate its 80th anniversary, EV5 can be called a masterpiece of Kia's "in China, for China" concept. Developed based on the world's leading E-GMP platform dedicated to electric vehicles, Kia EV5 is tailor-made for Chinese consumers. Nearly 400 Chinese elite engineers participated in the research and development. It is produced in Yancheng, Jiangsu Industry 4.0 Intelligent Manufacturing Unmanned Factory, which is in China. A major strategic model launched for the first time and sold globally.
Kia has always been based on technology. This time it brings a new "UNIWHEEL" system, also called a "functional integrated wheel transmission system", which splits the traditional transmission system into independent modules, including universal joints, half shafts Components such as reducers and reducers are moved inside the four wheel hubs, and a compact single motor is placed near each wheel, allowing each of the four wheels to have completely independent driving force.
UNIWHEEL consists of a central sun gear and four planetary gears arranged on both sides. They mesh with each other and rotate in the ring gear. When the power generated by the electric motor is transmitted to the sun gear, the planetary gears on both sides mesh with each other, causing the ring gear to rotate. The ring gear is then connected to the wheel to provide power for the rotation of the wheel.
Based on this working principle and the structural advantage of the UNIWHEEL system and the wheel hub installed together, the power can be directly transmitted to the wheels with almost no loss in transmission efficiency; at the same time, because the planetary wheels always remain in contact with each other under the action of the integrated connecting rod assembly The wheels move synchronously, so UNIWHEEL will not produce torsional vibration. No matter how bad and complex the road conditions are, the car can drive steadily with stable transmission. In addition to higher transmission efficiency and more stable driving, electric vehicles equipped with the UNIWHEEL system also have larger seating space and longer cruising range.
At the auto show, Kia's L4 intelligent driving technology also made a stunning debut. L4 intelligent driving technology is developed based on the needs of Chinese users and the traffic and road environment, and will better meet the needs of Chinese consumers for intelligent driving. Kia Motors equipped with L4 intelligent driving technology can realize traffic lights when driving on urban roads. It can identify and proactively yield to pedestrians and proactively avoid potential risks, and can pass through difficult and complex road conditions such as narrow roads; on elevated sections, it can independently choose the direction of the ramp and ensure that vehicles safely merge into the main road.
It is worth mentioning that Kia has obtained a license for road testing and demonstration application of L4 autonomous driving in Shanghai, conducts localized testing in Chinese cities including Shanghai, and conducts localized calibration and exploration for China's special road environment. The implementation and promotion of advanced assisted driving functions in mass-produced models.
Kia has been deeply involved in the Chinese market for 22 years and has high national recognition and reputation in China. In terms of technology, in order to further meet the needs of Chinese users, Kia has established an "iron triangle" R&D matrix in China, which are the China Institute of Technology, the China Forward-looking Digital R&D Center, and the Guizhou Big Data Center. Through the collaborative cooperation of the three major centers, Kia is carrying out comprehensive changes in technology, products, channels, services and other aspects.
It has strong technical research and development support and a good reputation that is deeply rooted in the hearts of the people. The "Kia Home" charity activity has always attracted attention from all parties: Yueda Kia has built a public welfare system including Kia Home, Hope Primary School, school-enterprise cooperation and other projects, with a cumulative capital investment of more than 110 million yuan. The "Kia Home" public welfare project was officially launched in 2009, adhering to the vision of "let every house have love". It has footprints in six provinces, Jiangsu, Sichuan, Guangdong, Guangxi, Zhejiang and Shaanxi, and has gathered 2,319 college student volunteers to assist It has built 166 houses, 1 entrepreneurial park for college students, 1 villager activity center, and improved the environment of 4 primary schools. A total of more than 55 million yuan has been invested, which has been highly recognized by all sectors of society.
Last year, the Responsible Cloud Research Institute and the China Automotive Industry Center jointly released the "2023 China Automotive Industry ESG Pioneer Index" overall list at the China Automobile Sustainability Conference. With its excellent ESG performance, Yueda Kia stood out among 100 automobile companies and was successfully selected into the top ten ESG brands in China's automobile industry in 2023, the Top 20 ESG Pioneer Index, and ranked second among joint venture car companies. On May 13 this year, the China Central Radio and Television Station’s Financial Program Center’s “ESG Action Report on Foreign Enterprises in China” was officially released. Yueda Kia ESG Index was listed on the list of "20 ESG Pioneers of Foreign Investments, Hong Kong, Macao and Taiwan Enterprises in China", ranking second among car companies, and becoming a model for the social responsibility actions of foreign companies in China.
Looking to the future, Kia is committed to its global brand strategy. Previously, Kia released its 2030 strategic plan—committed to becoming a global leading brand in the field of sustainable mobility. At the same time, it also announced four core business goals for 2030: 1. Accelerate the promotion of electrification. The annual sales volume of pure electric vehicles is planned to reach 1.2 million in 2030, and 14 pure electric vehicles will be on sale in 2027; 2. Global automobile sales in 2030 Product sales reached 4 million units, including more than 2 million environmentally friendly models; 3. All new cars are equipped with intelligent interconnection systems and automatic driving assistance technology; 4. Become the number one brand in the global PBV market in 2030 and launch the first product in 2025 .
Looking to the future, Kia is firmly with China. With strong strength and social responsibility, we meet challenges one after another. Continuously transforming and advancing, in the future development of intelligence, electrification and sustainability, I believe that a new era belonging to Kia is coming to us.
