In March, 2023, a year after "breaking up" with Dongfeng Motor, the brand-new yueda Kia Automobile brand officially brought the electrification strategy in the China market. At present, Korean cars are not performing well in the China market, and Kia is also trying to "break the game". On the occasion of "exchanging new peaches for old ones", Shell Finance reporter was invited to have an in-depth exchange with Yang Honghai, COO of Kia China.
Yang Honghai said frankly that Kia needs to continue to strengthen localization and correct some strategic misjudgments in the past if it wants to win the China market. Next, Kia will focus on embracing the China market and promoting the electrification transformation. This transformation will be comprehensively promoted from products, channels, services and marketing.
According to the plan, KIA EV6 will be introduced into the China market for sale within this year, and its sales model may be pure import. Kia plans to launch a total of six pure electric vehicles by 2027. By 2030, the sales volume of pure electric vehicles will be 180,000, accounting for 40% of the sales.
Photo courtesy of Yang Honghai/Enterprise
Bringing together global resources, Kia will deepen the China market.
Beijing News Shell Finance:What opportunities and challenges will Kia face when it officially enters the EV market in China this year?
Yang Honghai:There are two challenges that we see at present. First of all, the China market has its own laws and complexity, which is totally different from Europe and America. At the same time, the China market has been flooded with dozens of electric vehicle brands, each occupying a certain market segment; Secondly, KIA needs to continue to strengthen localization, correct some strategic misjudgments in the past, and resolutely implement new strategies with new tactics.
In terms of opportunities, first of all, under the goal of double carbon, the state has strongly supported and actively encouraged the development of new energy vehicles. After years of market cultivation, consumers’ acceptance of new energy vehicles has generally improved; Secondly, KIA is unwavering in deepening the China market, which is why we held this China electrification strategy conference at the beginning of the year. KIA is gathering global resources to fully promote the electrification transformation in China. This year, we will release two products, EV6 and EV5, and the flagship electric vehicle EV9; will be listed next year; Although we have made some misjudgments in the past, now the company is making every effort to promote change with the localization strategy.
Beijing News Shell Finance:What are the specific ideas for Kia to release its electrification strategy in the China market this time? How to win users in China?
Yang Honghai:Kia will persist in taking customers as the center and comprehensively promote products, channels, services and marketing.
In terms of electrification, Kia will strengthen its lineup of electrified products. It is planned that a total of six pure electric vehicles will be launched by 2027. By 2030, the sales volume of pure electric vehicles will be 180,000, accounting for 40% of the sales.
In addition, Kia will also increase investment in research and development of electrification technology. Combining the characteristics of China market and the needs of users in China, we will develop products and technologies that better meet the needs of users in China through R&D teams such as China Forward-looking Digital R&D Center.
At the same time, Kia will also accelerate the construction of sales channels for electric vehicles. Cooperate with large dealer groups to strengthen the construction of dealer network; And directly connect users through the brand APP.
In terms of energy replenishment, we will lay out the infrastructure facilities for electric vehicles. In addition to giving away personal charging piles, the company is planning to cooperate with Shell to build a brand fast charging station equipped with 800V fast charging piles (it only takes 18 minutes to charge from 10% to 80%), and cooperate with domestic mainstream charging operators to build a diversified charging service system.
In terms of services, we will launch the Kia brand APP this year, and comprehensively upgrade the user experience in all areas covering the user’s car life.
In 2023, the target sales volume is 180,000 vehicles, and EV5 will be produced in China and exported to the world.
Beijing News Shell Finance:At present, KIA’s sales of 180,000 pure electric vehicles in 2030 seem to be conservative. What are the reasons? Can enterprises make ends meet?
Yang Honghai:Different car companies face different situations, different development goals and different target groups. Therefore, on the road of electric transformation, there are also different speeds and rhythms. We need to be gradual and not aggressive.
Although our product strength is superior, the market environment in China is different from that in Europe, America and other foreign markets, so we need to be steady and steady.
Generally speaking, to achieve the annual sales of 200,000 electric vehicles can basically achieve the balanced development of the company. In addition, the China market will also realize the domestic production of EV5 and export it to the global market, and there may be 100,000 vehicles or even higher performance in the future.
Beijing News Shell Finance:What is Kia’s current product rhythm?
Yang Honghai:At present, KIA’s product planning rhythm is that KIA EV6 is expected to be imported and listed in August this year; In November this year, EV5; will also be listed; In 2024, Kia will launch the flagship electric SUV-EV9; From 2025 to 2027, an entry-level pure electric SUV, a high-end electric car and a medium-sized pure electric SUV will be launched respectively.
EV5 will be the first vehicle listed in China, produced in China and exported to the world, which is of great significance.
In 2027, according to Kia’s global strategy, a total of 15 models will be launched in various markets around the world. According to different markets, there will be different plans and layouts. In China, the current plan is to launch six models. Subsequently, we will combine KIA’s R&D team in China, such as Shanghai Forward Digital R&D Center, focus on the needs of China users, and develop more products and technologies to meet the needs of China consumers.
Beijing News Shell Finance:In terms of channel construction, what parts did Kia do?
Yang Honghai:We will build an online and offline integrated sales channel. In terms of online sales, users will be directly connected through brand APP and WeChat applet, Tik Tok and Tmall Mall; In terms of offline sales, the national dealer stores will be upgraded according to the standard of SI 2.0, the dealer employees will be given wage subsidies to expand the sales talent team, and large dealer groups will cooperate to establish new sales channels for urban exhibition halls.
At present, through global resource sharing, Kia has signed strategic cooperation agreements with well-known large dealer groups such as Simami, Jinlong, Tongli, Bradley and Xinhanma, all of which are "luxury brand" dealers in China market.
We will also develop the OMO business model, and plan to carry out strategic cooperation with enterprises such as car home to provide more thoughtful and convenient car purchase services.
Beijing News Shell Finance Reporter Bai Haotian Editor Chen Li Proofread Wang Xin