Kia Corporation, South Korea’s second-largest automaker, is accelerating its electrification efforts with a new electric vehicle (EV) project codenamed “CB.” According to a recent agreement between Kia’s management and labor union, the new model will be produced at Hwaseong Plant 2 by 2030.
Although the CB project is still in its early stages, Kia has not yet finalized its segment and size. Nevertheless, this move underscores the company’s long-term EV strategy amid a global recovery in electric vehicle demand.
New EV and PBV Production Plans in Hwaseong
Kia has confirmed plans to manufacture its mid-sized purpose-built vehicle (PBV), the PV7, at the Hwaseong EVO Plant starting in 2027. The Kia PV7, measuring approximately 5.9 meters in length, will target the growing commercial EV market, offering greater flexibility for logistics and business mobility applications.
To enhance efficiency, Kia is making significant adjustments to its production lines. The company will:
- Consolidate EV6 production at Hwaseong Plant 3 for smoother operations
- Produce the second-generation Seltos, including a hybrid variant, at Hwaseong starting in early 2026
- Convert Gwangju Plant 2 to a mixed production system for both EVs and internal combustion vehicles, following the cost-efficient setup used at Gwangju Plant 1
This mixed-line system, which costs only about one-tenth of a dedicated EV facility, will enable Kia to adapt production to fluctuating EV demand.
Strengthening Domestic and Global EV Supply Chains
Kia and its labor union have agreed to pursue domestic production of key EV components, including battery packs and power electronics (PE) modules. This initiative aims to bolster supply-chain resilience amid ongoing parts shortages and geopolitical uncertainties.
Additionally, Kia’s Gwangmyeong plant will upgrade its Carnival minivan lineup with the latest Theta III T-GDI powertrain, maintaining internal combustion development alongside its EV expansion.
Kia Rides the Global EV Market Recovery
Kia’s production overhaul coincides with a rebound in global electric vehicle sales. According to SNE Research, 12.84 million new EVs were registered worldwide in the first eight months of the year, marking a 27.7% year-over-year increase. Kia has kept pace with this growth, selling 114,000 EVs globally in the first half of the year.
Expanding EV Production Capacity in Europe
To meet rising international demand, Kia plans to expand its annual EV output in Europe to 180,000 units by 2027. This includes 80,000 units of the EV4 hatchback and 100,000 units of the compact EV2. Kia has already begun EV4 production at its Žilina plant in Slovakia, marking the first Hyundai Motor Group facility in Europe to manufacture vehicles using the E-GMP dedicated EV platform.
Kia’s Electrification Outlook
Kia’s roadmap reflects a strategic and flexible approach to electrification, combining new EV projects like the CB, scalable PBVs such as the PV7, and hybrid integration into existing lineups. With factory modernization, domestic component investment, and expanded global production, Kia aims to strengthen its foothold in the fast-evolving EV landscape through 2030 and beyond.
