About 30% of existing carmakers will face elimination from the market in 2030 due to a failure to transform their business, according to Calvin Lee, managing director of Sime Darby Kia Taiwan. Carmakers have little time left to completely overhaul their offerings, which is not only about vehicle electrification but also equipping them with smart cockpits and infotainment systems.
Since the development cycle of a vehicle requires six to seven years, Lee says the pressure is on.
More than 80 million vehicles were sold worldwide in 2022, an on-year decrease of around 1%, according to data. However, on-year growth has been declining since 2018. The recent slide is attributed to COVID-19 and the ongoing war in Ukraine, but in the long term, the decline of the fuel vehicle market will be a main factor. China accounted for 28.86 million sales in 2022, of which 20-25% were of electric vehicles (EV).
Sources pointed out that EVs are more than switching out fuel power for electricity. They incorporate AI, the internet, entertainment systems, and smart city applications, all things traditional carmakers are not experts in.
Of the top 10 EV makers and vehicle models in 2022, Chinese carmaker BYD Auto experienced an on-year growth of 221%, ranking it first in the world, followed by Tesla, Volkswagen, General Motors (GM), Stellantis, Hyundai Motor, and Kia.
Lee pointed out that there are easily more than 100 EV brands in China. The starting price of BYD's Dolphin EV is CNY116,800, which is about half the price of Tesla's Model 3. With a driving range of 460 kilometers and a comprehensive built-in entertainment system, the Dolphin is an attractive option for young car buyers, and may also show how China's EV market has developed so quickly.
Lee noted that South Korea has set a target of producing 5.9 million fuel cell electric vehicles (FCEV) by 2040. As a result, Kia is carrying out its plans for fuel cell batteries.
Kia has made good progress in EV technology, including Level 3 tech such as the automated lane keeping system (ALKS), as well as for cameras, mmWave radar, LiDAR, over-the-air download, driver monitoring systems (DMS), data storage systems for automated driving (DSSAD), and operational design domain (ODD).
The focus on Level 3 autonomous driving is due to clearer regulations and legislation for it in the US, Japan, United Nations Economic Commission for Europe, Germany, and China. Germany opened its roads to Level 3 vehicles in 2022.
Kia's transformation strategy focuses on networking capabilities, automation, efficiency, and design, according to Lee. Kia's EV6 series, which is due to launch in Taiwan in the fourth quarter of this year, is based on the E-GMP platform. A 4.5-minute charge can drive up to 100 kilometers and only takes 18 minutes to go from a 10% charge to 80%.
In the first half of 2023, 5,800 EVs were sold in Taiwan, which is expected to reach a total of 22,000 for the year, compared with 16,000 sold in 2022. EVs are expected to account for 12-15% of total vehicle sales in Taiwan in 2025 and more than 30% in 2030.
Article translated by Eifeh Strom
