It's no secret at this point that the electric car segment is growing much more quickly now, and it seems many people you talk to are considering an EV. For this reason, it should come as no surprise that Honda and Kia have joined the list of automakers planning to boost their electric vehicle production and sales targets rather than fall behind.
This isn't the first time we've heard announcements like this. In fact, some brands wisely chose to take forward steps and boost EV production ahead of the boom. Kia proved some time ago that it could produce compelling EVs, and we've just been waiting for it to increase availability. While Honda hasn't been a complete stranger to the segment, it arguably has some catching up to do.
According to recent data, EV sales grew a whopping 60% in 2023, with one in every seven passenger cars bought globally being an EV. Electric cars now make up about 14% of all passenger vehicle sales across the globe. Electrek notes that back in 2017, just one in 70 vehicle purchases was an electric car, which was only 1.4% of the total market.
EV sales have been growing slowly for years. In some markets, such as Europe and China, the growth has been more notable, though that wasn't the case in the US. However, some argue 2022 may have marked a clear turning point.
While it may have seemed to some people just a few ago that EVs were simply a fad or a niche product, they're finally arguably working their way into the mainstream, with Tesla selling well over 1 million units last year and a crazy ~423,000 in the first quarter of 2023 alone.
With all of that said, Kia, which is owned by Hyundai, announced a boost to its EV sales target. It will invest an additional 24 trillion won ($18 billion) to reach 1.6 million electric cars sold by 2030. The automaker previously aimed for 1.2 million units. As for Kia sales as a whole, the company expects EVs to make up nearly 40% of its total sales volume by 2030. Kia also estimates that EVs will make up 9% of its total revenue by the end of this year.
Meanwhile, Honda revealed details this week about its plan to increase EV production to more than 2 million units by 2030. Its first EVs will come to market as part of a partnership with General Motors.