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(LEAD) Kia Motors to invest 29 tln won in future mobility

All News 11:05 January 14, 2020

(ATTN: CHANGES headline and lead; ADDS details)

SEOUL, Jan. 14 (Yonhap) -- Kia Motors Corp., South Korea's second-biggest carmaker by sales, said Tuesday it will invest 29 trillion won (US$25 billion) in electric vehicles and business diversification by 2025.

Kia Motors made the announcement as it aims to transform itself into a leading electric vehicle manufacturer while reducing the ratio of combustion engine vehicles it makes.

This photo taken May 2, 2019, shows a Niro EV being charged at the EV Trend Korea expo at the COEX exhibition hall in southern Seoul. (PHOTO NOT FOR SALE) (Yonhap)

"We are not simply adapting to changes in the automobile market but leading innovation to make a leap forward to become a leading player (in next-generation vehicles)," Kia Chief Executive and President Park Han-woo said at an investor relations session in Seoul.

With the planned investments, Kia aims to increase the number of all-electric models in its lineup from the current two to 11 and achieve a share of 6.6 percent of the global EV market in 2025, up from the current 2 percent, the company said in a statement.

In 2021, Kia plans to launch a new all-electric model in the domestic market.

The maker of the K5 sedan and the Sorento sport utility vehicle aims to sell 500,000 EVs and 1 million environmentally friendly vehicles in global markets outside China in 2026.

Kia also wants to achieve an operating profit margin of 5 percent in 2022 and increase it to 6 percent in 2025 based on the investment.

For the whole of 2019, sales dropped 1.5 percent to 2,770,693 vehicles from 2,812,200 cars the year before, the statement said.

kyongae.choi@yna.co.kr
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