May 03, 2024

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(Yonhap)

Kia, South Korea's second-biggest carmaker, said Friday it will invest 38 trillion won ($28 billion) in future mobility solutions by 2028, while strengthening its gasoline hybrid vehicle lineup amid slowing sales of electric vehicles.

The planned investment over the next five years is revised up from 33 trillion won announced last year.

Kia will inject 15 trillion won, or nearly 40 percent of the overall spending, in developing EVs, purpose-built vehicles (PBVs), advanced air mobility and robotics, the company said at this year's CEO Investor Day.

Kia expects the EV sales growth will be slowing further this year due to an economic slowdown, reduced government subsidies, lack of charging infrastructure and potential risks of fire.

To weather the slowing demand for EVs, the maker of K5 sedans and Sorento SUVs said it will increase the number of gasoline hybrid models in its lineup for years to come.

Kia aims to sell 3.2 million vehicles, including 307,000 EVs, this year, higher than the 3.08 million units sold last year.

It is planning to launch 15 EVs by 2027 and sell 1.6 million EVs in global markets in 2030. (Yonhap)