Kia targets bigger share of commercial vehicle market with flexible PBV hub
Kia is ramping up production of purpose-built vehicles at its Hwaseong hub, aiming to challenge established commercial vehicle makers with flexible manufacturing and customization.
The hub, located about 60 kilometers southwest of Seoul at AutoLand Hwaseong, combines dedicated PBV plants with a conversion center that tailors electric base vehicles to customer needs. Unlike conventional commercial vehicles that are mass-produced and later modified by outside bodybuilders, Kia designs its PBVs with conversion in mind from the outset, aiming to cut costs and lead times.
Mass production of the PV5, Kia's first dedicated PBV, began at the EVO Plant East in August 2025. The roughly 100,000-square-meter plant has an annual capacity of 100,000 vehicles and can build multiple PV5 variants on the same line, including Passenger, Cargo, Wheelchair Accessible Vehicle and Chassis Cab models.
During a media tour on Tuesday, Yonhap reporters observed automated production systems at work. Yellow robotic arms welded body parts, camera-equipped automated systems installed doors and tailgates, and vision-based systems checked for defects. Automated guided vehicles moved parts and bodies along preset routes.
Adjacent to the East plant, Kia is building EVO Plant West, which will produce the larger PV7 when it opens in June 2027. The new facility will add another 100,000 units of annual capacity, raising the two plants' combined base-vehicle output to 200,000 units a year.
Kia is targeting a commercial vehicle segment long led by Ford, Mercedes-Benz, Stellantis, Renault and Volkswagen. The shift to electric commercial vehicles may open the door for newcomers as fleet operators seek customized vehicles for last-mile delivery, passenger services and special purposes.
"Commercial vehicles are increasingly used as logistics platforms, work and leisure spaces, and special-purpose vehicles for public services," Lee Si-young, a senior manager on Kia's conversion model development team, said at the media tour. "As customer needs vary widely, Kia aims to offer a range of conversion models tailored to different uses."
The PV5 has already made an impact. It became the first Korean vehicle to win the International Van of the Year award for 2026. Kia said more than 40,000 PV5 units were sold globally in the first part of this year, against a full-year target of 54,000 units.
The next steps depend on larger models. The PV7, the second PBV model, will make its world premiere at the IAA Transportation 2026 show in Germany next week, ahead of its planned rollout in 2027. The larger PV9 is scheduled to arrive in 2029.
At its CEO Investor Day in April, Kia set a goal of selling 232,000 PBVs annually by 2030, with Europe and South Korea as key markets. The company says PBVs represent more than vehicle sales, encompassing customization, software and fleet services.
"The value of PBVs goes beyond the vehicle itself," said So Deuk-young, head of Kia's AutoLand Hwaseong. "It requires flexible production and conversion capabilities to meet the diverse needs of customers."