For the first time since 2001, Kia has overtaken Hyundai in terms of market price with the launch of new electric cars this year. Kia is now South Korea’s fifth-most valuable stock, at $31 billion (41. 3 trillion won).
Hyundai, which rescued Kia from bankruptcy in 1998, owns about a third of the South Korean automaker.
Hyundai Motor Group was established in 2000 following the acquisition of Kia. In 2003, the first Hyundai Genesis arrived and in 2015, the luxury logo became a standalone logo.
Kia’s inventory increased sharply after the announcement of fourth-quarter effects and guidance for 2024 on Jan. 25. Plans include a KRW 500 billion ($376 million) percentage buyback plan and 3. 2 million (wholesale) sales.
The automaker is targeting 3.4% operating profit growth and an operating profit ratio of 11.9% in 2024.
Despite the “challenging environment” expected this year, Kia plans to continue its momentum by launching new electric cars at a lower cost. Kia said it plans to “pursue sustainable expansion by strengthening our leadership in the environmentally friendly car market. “
Kia is launching competitively priced electric models, EV3, EV4 and EV5. The new budget electric vehicles were unveiled at Kia’s first EV Day in October.
Kia is well-positioned to take advantage of the growing demand for electric vehicles, according to YongJin Jung, an analyst at Shinhan Securities.
Jung predicts Kia’s EV sales will increase 50% this year to 270,000 vehicles. While many competitors are giving up on their EV forecasts, a 50% expansion would allow Kia to stand out, Jung said.
Kia’s new vision of “EV for all” includes models ranging in value from $30,000 to $80,000. The new EV3, EV4 and EV5 will cost between $20,000 and $50,000.
Kia already unveiled the EV5, a compact electric SUV intended to rival Tesla’s Model Y, in China last November. Initial prices were even lower than expected, at around $21,000 (149,800 yuan).
The EV3 and EV4 concepts were introduced for the first time. The EV3 is an electric crossover from the flagship EV9 but in a compact package. It features an ambitious design inspired by Kia’s “United Opposites” theme. The interior of the EV3 offers enough space with ergonomic seating and ambient lighting.
Meanwhile, the EV4 is an “all-new type of EV sedan. “It features a low nose, a sleek silhouette, and a roof spoiler that gives it the feel of a sports car sedan.
Kia also introduced its cheapest electric car yet, the new Ray EV, last summer in South Korea, starting at $20,000 (27.35 million won).
New electric cars are one of the main reasons Kia has overtaken Hyundai in terms of market value. Kia sold 111,545 electric vehicles in 2023, while Hyundai sold 158,110, according to BloombergNEF data.
In the U. S. , Kia has unveiled a new Light Long Range edition for the 2024 EV6. The new variant starts at $45,950 (not including destination) with a range of up to 310 miles. Kia’s base EV6 starts at $42,600 with a range of up to 232 miles.
While many rivals, including Ford, GM, VW, and Toyota, are pulling back on EV initiatives, Kia (and Hyundai) are surging ahead.
Kia believes its new affordable EVs will help accelerate sales, and investors are clearly on board. Hyundai, including Kia, has already overtaken Ford and GM to become the second-largest EV maker in the US behind Tesla.
The automaker completed an eight-month transformation at its manufacturing facility in South Korea, its first committed upgrade of an electric vehicle plant.
Kia will produce new electric models, adding the EV3 and EV4, at the plant. Once completed, the plant will manufacture 150,000 electric cars each year.
The new models will play a key role, as Kia aims to sell one million cars by 2026. By 2030, Kia plans to sell 1. 6 million cars with a full lineup.
Source: Bloomberg
Peter Johnson covers the automotive industry’s step-by-step transformation to electric vehicles. He is a seasoned investor, money writer, and electric vehicle enthusiast. His enthusiasm for electric vehicles, primarily Tesla, is one of the main reasons he pursued a career in investing. If he doesn’t tell you about his latest discoveries in the 10K, you can spot him enjoying the outdoors or exercising.