KG Group and KG Mobility Chairman Kwak Jae-sun speaks during a press conference at its headquarters in Seoul, Thursday. Courtesy of KG Mobility
KG Mobility looks set to remain in the black with a renewed export-driven growth strategy and expand sales in Europe by diversifying it lineup of price-competitive electric vehicles (EV), KG Group and KG Mobility Chairman Kwak Jae-sun said Thursday.
The company achieved a remarkable rebound in the first half for the first time in seven years and only about a year after acquiring the struggling SsangYong Motor.
The head of KG Mobility displayed confidence in extending the winning streak throughout the latter half of this year on export growth of the first KG-branded electric vehicle (EV), Torres EVX.
“We have shifted our strategy and focused more on overseas markets by launching more price-competitive models there and this generated tangible outcomes for the past year,” Kwak told reporters during a press conference in Seoul. “KG Mobility is widely forecast to keep posting surpluses in the third quarter, and we will be able to maintain the momentum in the latter half on growing exports of Torres EVX.”
Torres EVX is equipped with a battery pack sourced from China's BYD. Kwak said the company also leaves open the possibility of partnering with Korean battery makers, such as Samsung SDI and LG Energy Solution, when launching future EV models.
“Technological skills of Chinese battery manufacturers are not falling behind Korean firms,” he said. “If we use batteries from Korean manufacturers, we will lose price competitiveness in Europe and other foreign markets. Torres EVX uses BYD's lithium iron phosphate (LFP) batteries, but this may change for our upcoming EV models.”
KG Mobility also shared its long-term corporate vision of expanding investment and partnerships with industry players to build a full-fledged EV lineup in an era of electrification. The company also pledged to become eco-friendly by launching a diverse range of hybrid and electric vehicles for SUVs and pickup trucks.
In 2024, the company plans to unveil an electric pickup truck and will unveil the electric KR10 SUV the following year. KG also expressed a vision of diversifying sales channels after completing its takeover of Edison Motors. The corporate name of the local EV bus manufacturer will be legally changed to KGM Commercial.
“We will produce a more diverse range of EV buses, and plan to generate more than 300 billion won ($223.8 million) in annual sales from the affiliate following the acquisition,” he said.
KG Mobility also shared its sales target of more than 320,000 across the globe by 2026.