Kia celebrated the commencement of construction for its purpose-built vehicle (PBV) manufacturing facility, dedicated to battery-electric vehicles (BEVs). Kia’s President and CEO, Ho Sung Song, emphasised Hyundai Motor Group’s commitment to investing 24 trillion KRW (around USD 20.7 billion) in the domestic EV industry by 2030, striving to position South Korea as a leading player in the global EV market.
The state-of-the-art smart factory, equipped with advanced technologies, will cover an expansive area of 99,000 acres. Kia plans to begin mass production in the second half of 2025, targeting an initial annual output of 150,000 units, with the potential for further expansion based on market demand. The facility will incorporate eco-friendly practices, employing Hyundai Motor and Kia’s E-FOREST technologies for efficiency and intelligence, including digital manufacturing systems.
The PBV plant will adopt innovative production processes such as the “cellular method,” facilitating flexible manufacturing to cater to diverse customer preferences. The manufacturing system will combine the cell method with the conventional mass-production conveyor system, enabling customisation of various product types while maintaining efficiency.
The facility will prioritise sustainability by implementing a low-carbon approach. Measures include utilising a dry booth for painting processes, leveraging natural light, streamlining operations, and reducing carbon emissions by approximately 20% compared to existing factories. Automation utilising ML and AI will enhance operational efficiency, while the facility’s design will focus on creating a human-friendly environment and reducing noise levels.
Kia’s first model in the PBV lineup, known as “SW” (project name), is expected to debut in 2025. Based on the dedicated “eS” platform for battery electric PBVs, SW will be a mid-sized vehicle capable of accommodating various business demands, such as delivery services, ride-hailing, and B2B transactions. Kia plans to expand its PBV product range to include large-sized PBVs for logistics, fresh food delivery, multi-seat shuttles, mobile offices, and stores, as well as small-sized PBVs and mid-sized robotaxis with autonomous driving capabilities.