Kia’s plans to enter the van market have accelerated at a rapid pace, from announcing their intentions during their 2023 Kia CEO Investor Day to launch an electric light commercial vehicle, the Korean manufacturer has not only shown concepts and a production model but also built an entirely new production facility to build their Platform Beyond Vehicle (PBV) range.
Ahead of the Seoul Mobility Show, last month, we sat down with Kia CEO Ho-Sung Song, who answered a range of questions from the progress of the new Kia van programme, through to brand identity, sales strategy for the Kia PV5 and reaching its ambitious target of 250,000 sales by 2030.
Are you pleased with the progress and reaction to Kia’s entry into the Light Commercial Vehicle market with new electric vans?
Yes, we are very pleased. Our return to the LCV market was shaped by stricter environmental regulations, digitalisation, and advancements in software technologies, like AI. Despite these changes, we saw this as the right time to introduce Platform Beyond Vehicles (PBVs).
Our dedicated EV platform is built and tested for B2B usability. This is our USP in combination with the ecosystem of dedicated connected services, FMS, conversions, and so on.
Businesses today need tailored mobility solutions but face common challenges like compromised quality and safety in low-cost models, limited electrification options, inefficiencies in vehicle conversion, and a lack of digital compatibility.
Kia is taking a fresh approach to meet the evolving demands of business customers by offering connected services that enhance efficiency and customisation.
Is there a risk that customers will be confused by the PBV term?
Platform Beyond Vehicle expresses Kia PBV's commitment to providing differentiated value to business and daily life of customers.
We will build a supplier ecosystem of product, solution and future technology, centered on PBV and expand the ecosystem with the participation of customers to respond to various needs in the market. Kia is initially communicating with customers using the term PBV, but with the launch of PV5, PBV will grow into a brand representing new mobility and business through changes in customers’ businesses and daily lives.
The term "Platform Beyond Vehicle" (PBV) was chosen to clearly communicate Kia’s vision of going beyond the traditional concept of transportation.
It reflects our ambition to deliver not just a vehicle, but a comprehensive platform that integrates hardware, software, and services to meet the diverse needs of businesses and customers.
When will we see production models on sale?
The PV5 is set to go on sale in Korea and Europe in the second half of this year, with pre-orders expected to begin in the first half of the year for these markets. Sales in other global markets, including the ASEAN and MEA regions, in 2026.
To support a diverse range of business applications, conversion models will enter production sequentially between 2025 and 2026.
What is your sales and dealer strategy?
We anticipate commencing pre-orders for the Korean and European markets in the first half of this year.
More than 60% of Kia dealers already have experience in LCV sales, so we are selecting dealers mainly within the Kia network. However, we are also looking at specific LCV Centres.
We will establish dedicated PBV Centres to provide professional and high-quality services specifically tailored for PBV customers. We wish to build long-term relationships based on trust in Kia products and the brand. We aim to establish 640 PBV dealerships in Europe by 2025 and also recruit external dealers to expand coverage and expertise.
Will it be challenging to convert new customers who are loyal to current brands?
Yes, we anticipate that it will likely be challenging to convert new customers who are loyal to other brands. However, we aim to convince new customers by positioning our PBVs as business platforms.
Our PBVs offer USPs like a dedicated EV platform with up to 20% more cargo and loading capacity compared to traditional models, flexible space configurations through modularisation, V2X connectivity, an optimised TCO, a comprehensive and reliable PBV ecosystem, ultra-fast charging (10 to 80% in less than 30 minutes), versatility in B2B applications.
For business customers, a low TCO will be attractive, and on top of that, minimum downtime, efficient fleet operation, and more value. We have been incorporating this into our PBV line-up since day one.
Customers exercise dealer loyalty, and they look, first of all, for what’s important to them: uptime and ease. So, if we have the right network and the right quality, they can make the switch seamlessly.
Will you initially target Kia car customers who operate vans?
We are targeting all B2B customers. To introduce PBVs, we plan to leverage our existing global sales and service network, which includes dealerships that already serve Kia owners.
We are in the process of developing a specialised PBV Customer Experience Journey (CXJ) tailored to B2B customers. This will not be limited to Kia owners.
Our main goal is to establish a strong presence in the overall LCV market and specifically target B2B customers with our PBVs.
We can reassure businesses with our strong service network, including PBV Centres and fast parts delivery. We will also position the PV5 with competitive pricing and promote its modular design for versatile commercial use. On top of that, we will also join trade associations and attend roadshows for even more reach.
How long do you think it will take to reach the 250,000 units figure?
The PBV market will initially compete with the established LCV market, which continues to experience steady growth. By 2030, the LCV market is expected to reach approximately 3.5 million units, with an estimated demand for 1.5 million electric vans in key EV markets such as Europe, North America, and Korea.
By 2030, we will have already launched the PV7 and the PV9. Within those five years, our goal is to achieve 250,000-unit sales of our entire PBV line-up.
Kia aims to expand its PBV lineup, positioning itself as a key player in the evolving compact electric van segment. While it is too early to disclose specific market share targets, our dedicated PBV platform, competitive pricing, and strong marketability will allow us to capture a significant portion of the growing demand for electric vans.
There have been many global political situations emerging since targets were published. Is Kia still on-track to meet these targets?
PBV aims to respond to global demand by fostering AutoLand Hwaseong in Korea as its main production base in the early stages in order to concentrate the capabilities of related ecosystems.
We plan to continuously monitor implementation period and contents of each country’s protective trade policies, and will prepare the optimal response plan considering our sales plans and global supply chains.
What will be the price of the different versions of the PV5, and will there be differentiated pricing for different European markets?
PBV is a newly developed vehicle based on a dedicated EV platform but will have the same price competitiveness as its competitors' derivative EVs.
PV5 will have €35K (€30K excluding VAT) for the Cargo Van entry, and €40,000 for the Passenger Van. PV5 has a higher price/product competitiveness than its competitors considering its superior marketability, including the best features in its class and future-oriented design.
Subsequently, PV7 and PV9 will be set at competitive prices considering price positioning between vehicles and competitor prices. MSRP will be continuously checked in consideration of sales target volume, market settlement, and competitive environment.
Based on the competitiveness of the dedicates EV platform and the marketability specialised in B2B/Commercial, we are considering providing the same level of price competitiveness as external conversion companies and competitors.
In particular, the production of base vehicles optimised for the conversion minimises redundant work such as removal and reassembly of parts according to the conversion after the production of the base vehicle, and also minimises unnecessary waste of resources and manufacturing time, and reduces logistics costs by establishing a conversion centre near the base vehicle production plant. Detailed prices for each conversion model will be disclosed later.
Which brands and models do you see as PV5's main competitors in European markets and what would be the main advantages of your product?
The PV5 has set competition as CDVs from major OEMs such as Citroen, Renault, and Ford and provides a competitive edge in marketability and price.
In addition, the cargo van's high-roof version has a cargo volume of 5.1 m3, which was developed considering larger loading performance of entry level models in the MVAN segment.
PV5 is a vehicle developed based on a dedicated EV platform. The development concept is high durability (600,000km body/PE 300,000km durability rating), low-floor platform, and PBV exclusive solution. It can respond to various market needs and use cases.
The cargo van provides high work efficiency through a low rear loading height and a high in-door height of up to 1.8m, cargo room V2L, and walk-through.
Passenger vans are equipped with a low step height to ease passengers to get in and out of the vehicle. Various customising items based on open source can be installed, and fold-and-dive seats are installed on the second row which can be assisted with a full flat luggage board item.
Are you continuing to work on improving the batteries, their weight capacity, durability…?
Yes, Kia is actively working on improving battery technologies, including weight capacity, durability, and overall performance.
We are expediting the development of next-generation battery technologies, such as all-solid-state batteries (ASSBs), which will offer significant improvements in driving range and charging convenience. Our ongoing efforts aim to provide our customers with enhanced battery performance that meets their evolving needs and expectations.
What are the reasons for not communicating payload sooner, even if only indicative?
The reason we were unable to disclose the payload among the specifications revealed at EV Day in February of this year was because we were concerned that disclosing inaccurate specifications before certification was complete could cause confusion to customers and the market.
We plan to disclose them once regional certification is complete. Although we cannot disclose the figures yet, we expect to provide numbers in line with our competitors.
What is Kia doing differently to support customers once they’ve bought a PBV?
Through collaboration with Hyundai Mobis, Kia is preparing various system and delivery innovations to optimise PBV downtime and reduce Total Cost of Ownership (TCO) by establishing a same-day parts delivery system and expanding Mobis’ European warehouses.
Also, we plant to implement an automatic parts ordering system for PBV dealers and develop a D2D Express system by which parts inventory sharing between dealers.
We're planning remote diagnostics with the KCD platform before repairs and considering 24/7 drop-offs with Key Kiosks.
To prevent parts shortages, we'll use the IRIS system for automatic inventory replenishment and enhance D2D Express for urgent part sharing between dealers.
We're also expanding our courtesy car fleet and exploring ways to optimise its availability across our network to minimse operational gaps for customers during maintenance.
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Ho-Sung Song was speaking to members of the International Van of the Year jury. Some of these answers were given afterwards as written statements.
