The 21st Guangzhou International Automobile Exhibition officially opened on November 17th. The development of smart cars and new energy vehicles is not only a revolution in transportation, but also a change in lifestyle and mindset. With the continuous upgrading of competition in new energy vehicles, more new products and technologies will appear before the world. This year’s Guangzhou Auto Show will be themed “New Technology, New Life,” showcasing the latest technological achievements brought about by the development of smart cars, as well as the new changes it brings to consumers. In response, different executives have expressed their views. Li Yang, Director of Kia China’s Product Planning and Operations Department, stated that Kia currently has about 11 models on the market, including both fuel vehicles and the two newly launched electric vehicles. Each model serves a different purpose. For example, the first-to-market EV6 plays an important role in enhancing the brand and entering the Chinese electric vehicle market early, letting consumers know that Kia has not given up on such a large and promising market in China, and giving consumers an expectation. The real focus, however, is on the EV5. The EV5 is a global model, and it will debut in China, indicating that Kia has placed the Chinese market in a very strategic position.
The following is the interview record: Sina Auto: Hello everyone, welcome to the 2023 Guangzhou Auto Show Sina Auto interview. We are very fortunate to have invited Mr. Li Yang, the Minister of Kia China Goods Planning and Operations. Li Yang: Hello Sina Auto: Mr. Li, please greet our netizens. Li Yang: Hello everyone, I am Li Yang, the Minister of Kia China Goods Planning and Operations. I am very happy to see everyone. Sina Auto: In March of this year, Kia announced a new energy strategy to accelerate electrification. Can you share with us what achievements we have made in this transformation so far? Li Yang: Okay, this year is the first year of Kia China’s electrification transformation. In March of this year, we held EV DAY in China, and the global CEO of Kia personally came to China to share the electrification strategy, which marks Kia’s unwavering commitment to electrification transformation in China. On October 12th, Kia Global also held EV DAY in South Korea, and models such as EV6, EV5, EV4, EV3, and EV9 will enter the Chinese market in due course. We have conducted in-depth research on the Chinese market. According to the data, as of October this year, the overall penetration rate of EVs in China is about 23%, with an additional 8% for PHEVs and 2% for EREVs. In fact, the pure electric market only has a little over 20% market share, in other words, this is a new market, but the competition is very fierce. Although Kia’s electric products have entered the Chinese market slightly slower, we hope that slow and steady will go further. At the Chengdu Auto Show on August 25th, we officially launched the globally popular EV6, which won the 2022 European Car of the Year, 2023 North American Car of the Year, and 2023 World Performance Car of the Year awards. So, we have introduced this excellent product to China through imports, hoping to provide Chinese users with a better experience. Today, we officially launched the EV5, which is very critical. From Kia’s senior management to the entire company, all our resources are focused on the EV5. If netizens are concerned about the EV5, they can delve deep into understanding the launch of the EV5, and by next year, by 2027, we will ensure that at least one new EV model is launched in the Chinese market every year. Sina Auto: Just now, you mentioned that the global debut of EV5 in the Chinese market is extremely competitive in the segmented market. What are Kia’s market expectations for EV5 and what countermeasures are there to better achieve these expectations? Li Yang: The EV5 product plays a very crucial role in Kia’s electrification transformation. Kia now has about 11 models on sale, including gasoline cars and these two new electric cars. Each model has a different role. For example, the first-to-market EV6 plays an important role in enhancing the brand and entering the Chinese electric car market early, letting consumers know that Kia has not given up on such a large and good market in China, giving consumers an expectation. So, the real focus is on this EV5. EV5 is a global model, and its launch in China shows that Kia has placed this market in a very strategic position. If we were fighting alone in the Chinese market before, now the entire Chinese market has been incorporated into the global market, including product operations, channel construction, marketing reform, and even organizational reform, all of which will be adjusted to international standards. EV5 must fully meet international standards. The price range of EVs in the Chinese market is currently very chaotic. In order to satisfy Chinese consumers, we will provide a global category of vehicles based on a price system suitable for China. This car will only be produced in the Jiangsu Yancheng factory in China and the domestic factory in Korea, and then exported to various parts of the world. In other words, it means that you can buy a global quality vehicle at a Chinese price, which is a very important point. Secondly, the future real product strength must be seen in China. If it succeeds in China, it has the potential to succeed globally. But if it doesn’t succeed in China, sorry, it will be difficult to stabilize the global market. This is the relationship. Third, the entire Kia Group conducted extensive consumer research in the early stages of product introduction. For example, we have a pre-research technology institute in Shanghai, a big data center in Guizhou, and a technology research and development center in Yantai. These research institutions specialize in conducting surveys and analysis specifically for customers to understand what they are interested in and what inspires them. Our vehicle development is based on a customer-centric approach. When it comes to the car itself, the first impression is crucial. Many electric cars on the market seem to have similar design styles, either imitating each other or following a similar pattern. However, the design of the EV5 is different. It emphasizes a muscular, streamlined, masculine, and SUV’s rugged attributes. The design also includes unique and trendy wheel hubs and starry LED lights as accents, making it easily recognizable as a Kia electric car from any angle, day or night. This is the design DNA of Kia electric cars, which will continue in future models such as the EV4, EV3, EV7, and EV9. We all know that in Korea, Japan, and China, we are all part of the Eastern system and share common characteristics. Therefore, it is important to thoroughly research what Eastern people need and don’t need. For example, the EV5 has a spacious interior with a length of over 4.6 meters, a wheelbase of 2.75 meters, and the highest headroom in its class. The front driver’s seat in the long-range version has 14 electric adjustments, including a massage function with pneumatic massage and zero-gravity decompression, as well as a leg rest. It provides a relaxing space where one can watch TV, listen to music, have voice conversations, or chat on WeChat. You can even meditate and relieve stress without any problems. Most electric vehicles are aimed at young men and women, especially couples, taking into account their boundless connection to make their relationship closer. Therefore, I specially designed a seat, the romantic seat in the front row, where the two seats are not separate, just fold the central armrest upward and any intimate action can be done to ensure boundless connection, it is very intimate and humanized. Looking at the second row, first is the 60/40 split seats, a standard feature across the range, as well as rear angle adjustment which is rare in the same class of vehicles. At the same time, it can achieve a completely flat 0-degree folding, when the front seats are moved to the front, the entire length can reach over 2 meters, which is a very good experience for young people who like camping, car accommodation, short trips, and long-distance travel. There is also a humanized equipment that everyone likes – the multi-purpose small table board in the trunk. Imagine a scene where a young couple takes their children on an outing. At this time, you can have a picnic outside, fish by the stream, let the children play with building blocks, draw, or place an iPad and other electronic products on the small table board in the trunk for the children to watch cartoons. When the battery runs out, you can also charge it through the V2L external power supply. We want to let consumers perceive the advantages and strengths that electric vehicles should release, bring a new experience, and open up a new way of life. Finally, in addition to V2R internal discharge, EV5 can also discharge externally. Generally, competing products only have one function, either internal discharge or external discharge, with only one of the two functions, while we have both functions. Speaking of the three-electric system, EV5 has launched a standard version with a range of 530 kilometers. Around March next year, we will launch a long-range version with a range of 720 kilometers. It is understood that in the compact pure electric SUV models, the standard range is generally between 450-520 kilometers, while our 530-kilometer range is leading. And our long-range 720-kilometer range also completely takes the lead. Looking at the charging, EV5 is equipped with 400V fast charging and general household slow charging, with two charging methods. The fast charging at 400 volts from 30% to 80% only takes 27 minutes, while competitors’ charging times are usually over 30 minutes. Chinese people enjoy road trips and it’s a waste of time to wait for a charging station on the highway for hours, so we have alleviated customers’ anxiety about charging stations and charging times. As for the prices, ranging from 149,800 yuan (20960$), 159,800 yuan (22360$), and 174,800 yuan (24460$), the prices of the three models are very competitive within the entire joint venture brand, and even compared to pure independent and new energy brands. Everyone can fully appreciate Kia’s sincerity in China this time. Sina Auto: Thank you very much, Mr. Li, for the comprehensive introduction to the configuration and highlights of the entire car. After listening to your detailed analysis, we have a very deep understanding of this car, although I have not seen this car yet. Li Yang: You must visit our exhibition hall, 1.2 exhibition hall. Sina Auto: Okay, I can’t wait to go see it now. So, whether it’s the era of gasoline cars or electric cars, competitive technology is the key to victory. In the face of the fiercely competitive Chinese new energy market, what technological advantages or layouts does Kia have to stand out in the competition? Li Yang: When it comes to new energy electric vehicle technology, it’s different from gasoline cars. For gasoline cars, everyone mainly looks at the engine and transmission, which are the core of traditional car manufacturing. But now, China is the fastest-growing market for electric cars in the world, with the largest number of electric cars, so there are so many car manufacturers, non-car manufacturers, and peripheral companies entering the electric car market to grab a piece of the pie because the market is really tempting. Kia cannot fall behind. The platform of Kia’s electric vehicle technology is very crucial, just like a person’s skeleton. If the skeleton is not well developed, no matter how much blood and flesh is added on top, it won’t be reliable. There have been many incidents of electric car malfunctions online recently, which traditional car manufacturers cannot accept. So, the platform is crucial, and Kia’s E-GMP platform with high-performance motors, as well as the flexibility and safety of the platform, are very advanced. This platform is developed solely by our Kia Group. It is not only used for the production of the EV6 model, but also for the EV5, EV9 and other electric vehicles. It has several major advantages. First, the entire platform is modular, allowing various known technologies to be integrated. Its versatility is quite extensive. Second, it can accommodate high-performance dual motors, such as the recently launched EV6, which starts at $60,000 in the North American market but at 282,800 yuan (39580$) in the Chinese market. The high-performance version is around 400,000 yuan (55980$), selling for nearly 500,000 yuan (69980$) in the United States. Its most powerful feature is the high-performance dual motor, with a combined power of up to 430 kilowatts and a motor speed of up to 21,000 rpm, which is basically the peak for all electric vehicles in the Chinese market. The recently launched Jike 001, which is a rear-wheel drive model, has a maximum motor speed of 20,600 rpm per minute, but has not yet reached 21,000 rpm. However, it sells for over 700,000 yuan (97970$), while you can buy the EV6 with its high technology for 400,000 yuan (55980$). In the testing process, the EV6 can reach a top speed of 266 kilometers per hour, close to the takeoff speed of an airplane. The platform also has strong flexibility, allowing for the production of SUV models, MPV models, and sedans, with the ability to define any type during the development phase, enabling many components to be shared and allowing consumers to enjoy lower costs during component replacement, maintenance, and repairs. Additionally, the platform’s center of gravity is lowered, reducing centrifugal force even during high-speed turns, and when combined with the current intelligent driving assistance system, there are no worries about high-speed performance. As for autonomous driving technology, we have already tested vehicles equipped with L4 technology in Shenzhen, Shanghai, and Beijing. Although we are currently only at L2 and L2+, once L3 is permitted by law, our technology reserve can be released to meet market demands. While our technology reserve is strong, we have currently only trained up to L2+, which is already quite advanced among vehicles of the same level. Sina Auto: This year, the industry is very much in turmoil. Since the emergence and development of new energy vehicles and smart cars, the entire industry has undergone disruptive changes. This includes changes in traditional cars and smart technology, current traffic and long-termism, user value and corporate organization, the current status of dealers and channel changes, as well as the trends for 2024. What are your personal thoughts on these aspects that you can share with us? Li Yang: I am more inclined towards improving the power of the channels. The current dealer system is a time of change and intense competition. Even if we are unwilling, the market has already developed to this state, so we have no choice but to keep up with the times. Our entire company is currently undergoing transformation and adjustment. Our original company name was Kia Motors, and now it is called Kia. It is a company that focuses on travel and mobility. There are many inspirations in the process of travel, and we provide a variety of services, including extended services, and so on. Our overall product strength is also increasing. When people used to talk about the Kia brand, they felt it was affordable and had no product highlights. These perceptions are slowly changing with the transformation of the Kia brand and the introduction of new models with more product highlights. Consumers will gradually perceive that Kia has been working hard and has not given up on the Chinese market. Our marketing capabilities are also changing. In addition to traditional marketing methods, we now have short videos, new media, live broadcasts, and some cross-border marketing. We are constantly trying and working hard. With such good products, good prices, and good marketing methods, the final implementation must be realized through the channel. It is really important. Our channel construction is operated from several major aspects. First, upgrade the existing dealer system continuously, injecting them with advanced global concepts and updating them with a new SI 2.0 design style, including updating storefront designs and adding electric car equipment, making the entire 4S store look completely new. Second, we must continue to develop a more powerful dealer system, such as signing contracts with large dealer groups such as Senma, Jinlong, and Xinhama. They found that the new Kia is selling very well globally, and they believe that Kia will also sell well in China. These dealer groups are constantly investing, and new dealer stores are opening in large cities such as Shenzhen, Shanghai, and Guangzhou, just like spring bamboo shoots, which has greatly improved the service experience we provide to customers. Thirdly, we will set up urban showrooms in key areas and build experience centers in some bustling commercial areas, allowing customers to easily experience Kia’s products while shopping, increasing exposure, and gradually changing customers’ perception of us. Finally, another aspect of channel improvement is the online customized car sales service through the APP. Our structure will become more and more transparent, and customers will gradually feel a significant improvement in channel strength through online car purchasing, consulting, servicing, maintenance, and special customization needs. Sina Auto: Mr. Li, there is one last question. This is a recent topic that has been widely discussed by netizens on Weibo. You can choose one to share your personal opinion. These are all real topics with high readership. Li Yang: Does buying a fuel car mean giving up intelligence? Definitely not. Let me talk about this issue. Currently, the total proportion of new energy vehicles is only 30%. China is really huge, with uneven economic development from north to south and east to west. There are differences from first-tier to fifth-tier and sixth-tier cities. The electrification rate in Hainan has exceeded 60%, while it is less than 10% in Xinjiang and Tibet. Therefore, Kia’s strategy is to pursue both options. We will not give up on any area. In the future, we will have six pure electric vehicles and six fuel vehicles, including pure electric vehicles, HEVs, and PHEVs, all in our plans. Does choosing a fuel car really mean giving up intelligence? Of course not. Intelligence can be used in electric vehicles and also in fuel vehicles. In addition, there are some differences between joint venture brands, traditional independent brands, and new forces brands. Joint venture brands have some core technologies that cannot be directly brought into the Chinese market. They must collaborate with some local technology companies in China. Therefore, we are also seeking long-term cooperation, even strategic cooperation, with Huawei, Baidu, Tencent, and others. I believe that every joint venture company, including foreign-funded enterprises, must walk this path. Why does he want to be in China, for China, and develop China? We are the same. Sina Auto: Okay, thank you very much for accepting the interview, Mr. Li. We also wish the Kia EV5 to sell well. Li Yang: Thank you.