HANOVER — Kia (000270.KS) President and CEO Song Ho-sung said the company's push into purpose-built vehicles is now entering its main stage with the launch of the Kia PV7, its second large all-electric purpose-built vehicle, adding that Kia is in talks with more than 300 companies.
Song made the remarks on the 14th at IAA Transportation 2026, the world's largest commercial vehicle show, held in Hanover, Germany. About 4,000 units, including the PV5, are currently on order, and volumes under negotiation exceed 17,000 units, he said.
The PV7 is a dedicated all-electric purpose-built vehicle unveiled this year following the PV5, which Kia launched last year. It was shown to the world for the first time at IAA Transportation.
"The midsize van market that the PV7 is entering is the main market for light commercial vehicles, at roughly 800,000 units," Song said. "We decided to launch the PV5 first and the PV7 later because competition in the PV7's market is that intense."
He went on to express confidence in the model. "The PV7 market is large but far from easy, and it is not a market where you sell on product alone — you have to build a strong ecosystem to sell there," he said.
"Because the PV7 is a large delivery van, it suits major distribution and delivery companies, and we have been in contact with such companies for a long time and are reflecting their requirements in the product in advance," Song said. "In the end, how well the vehicle is equipped with the specifications end users need is a critical factor for success."
Kia has signed supply contracts for purpose-built vehicles including the PV5 with Swedish facility services company Bravida (about 400 units), British state-owned mobility leasing operator Motability, which serves people with reduced mobility (about 300 units), and Finnish elevator maker Kone (about 300 units).
Kia is targeting sales of about 250,000 units in its purpose-built vehicle business by 2030. Of that, the PV5 is expected to account for about 120,000 units and the PV7 and PV9 for about 130,000 units.
Kia plans to launch the PV7 Passenger and Cargo Long models first in the domestic and European markets in the second half of next year, then roll out 23 derivative and conversion models in global markets in stages.
"The United States is a region where driving distances are so long that it is not easy to convert delivery vehicles to electric, so we are not targeting it at this point," Song said. "But we do have plans to sell the PV7 in other regions such as the Middle East and Asia-Pacific."
