Kia Defies Global Auto Slowdown as War Lifts EV, Hybrid Demand

South Korean automotive major Kia Corp. is resisting a global slowdown in demand for auto after rising petrol prices due to the Iraq war bolstered demand for electric vehicles in Europe, and hybrids in the United States, as per CEO Song Ho-sung, citing a Bloomberg report.

In the auto sector, demand plummeted by 5% globally between January and May, however, the Seoul-headquartered company's sales rose over 4%, he said at the Busan Mobility Show on Friday. This triggered Kia's. global automotive share above 4%, he noted.

That momentum will probably continue even after the war ends, he added.

While the West Asia conflict is concerning, song expects high oil prices to persist for the time being,” Song said in a later interview. “While regional demand varies, this environment will push the appetite for EVs and hybrids higher.”

The shift has been noteworthy in Europe, where Kia’s sales surged above 10% in May, led by a massive rollout of mass-market EV models, Song said.

The gains came despite rise in competition from its Chinese rivals, whose progress has been kept in check  by European Union tariffs.

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“Europe is tough and China is growing, but Kia is growing as well,” he said.

In the US, Kia maintained strong momentum by bolstering hybrid models including its popular Telluride large sport utility vehicle. Kia is also gearing up to introduce a new midsize truck in the US as part of plans to expand its hybrid lineup to eight models by 2030.

In the foreseeable future, Kia is keen on securing its next leg of growth through specialised fleet buyers with software-defined, modular commercial vans also known as purpose-built vehicles.

Historically, commercial buyers have bought bare-bones trucks from automakers and paid third-party companies to customise the cargo space.

Song noted this old framework added steep costs, structural inefficiencies and significant environmental waste when brand-new factory parts were ripped out to clear space.

Meanwhile, Kia intends to lower overhead for customers and reduce waste. Following the launch of the mid-sized PV5, the company plans to roll out the PV7 and PV9 platforms in phases, offering more than 40 localised commercial variants, Song said.