Mass Production of Purpose-Built Electric Cars in Sight as Kia Commences Factory Construction

South Korean car manufacturer Kia has started building a specialized factory focused on battery-electric purpose-built vehicles (PBVs). These cars are designed for various commercial uses like delivery and ride-hailing services. 

The construction follows shortly after Kia’s recent CEO Investor Day, where the company pledged to release 15 electric vehicle models by 2027 and laid out future plans for their PBV segment.

The new factory, which is located in Hwaseong, Gyeonggi Province, South Korea, is a major investment for Kia, costing around 1.1 billion Australian dollars and spanning 99,000 acres. Mass production at the plant is set to start in the latter half of 2025, and the company aims to produce 150,000 units during its first full year, with room for growth based on market demand.

Kia plans to introduce innovative manufacturing techniques at this facility, including a “cell method” that allows for a high level of customization based on various customer needs.

The company’s first PBV model, named the SW, is slated for a 2025 debut. It will be a mid-sized vehicle, based on Kia’s eS platform, and will feature a specialized “skateboard” platform built specifically for battery-electric PBVs. 

This will enable the car to accommodate various types of vehicle bodies.

Designed primarily for businesses, the SW model will cater to delivery services, ride-hailing, and B2B transactions. 

After the SW’s launch, Kia plans to broaden its PBV offerings, introducing larger models suitable for tasks like logistics, fresh food delivery, and use as multi-seat shuttles or mobile offices and stores. 

Future plans also include smaller PBVs and a mid-sized robotaxi equipped with self-driving technology.