Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Korea Stock Exchange  >  Kia Motors Corporation    A000270   KR7000270009

KIA MOTORS CORPORATION

(A000270)
  Report
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Poland bets on electric car to power auto parts sector

11/09/2020 | 09:00am EST

WARSAW/PRAGUE, Nov 9 (Reuters) - For air filter maker PZL Sedziszow, Poland's ambitious plan to produce an electric car from scratch could be the catalyst that helps the auto parts industry catch up with foreign neighbours.

The company started making battery packs two years ago and believes the government's 5 billion zloty ($1.3 billion) plan to build two electric car models will attract more global automakers to emerging Europe's biggest economy.

"Only new mobility can really boost car production in Poland," owner and chairman Adam Sikorski told Reuters.

"If the manufacturers see there are sufficient and reliable suppliers of electric car parts in Poland, they will be more willing to place assembly plants in Poland."

Auto parts manufacturing accounts for 11% of industrial production and 4% of gross domestic product in Poland, far less than in Slovakia, Hungary and the Czech Republic, where the sector accounts for more than a third of industrial output.

But Warsaw believes the switch from combustion engines to battery cars could provide an opportunity to close the gap.

In July, state-owned ElectroMobility Poland unveiled prototypes for the Izera SUV and hatchback, two electric models aimed at the budget market which it plans to launch in 2023.

It's a risky bet.

Government efforts to kick start car industries have a chequered history at best, with Britain's attempts to help DeLorean establish a supercar business in the 1980s proving a costly and embarrassing failure.

Global automakers with decades of experience are already churning out electric models, and the pressure on Poland's public finances from the COVID-19 pandemic raises questions over how much money it will be prepared to put behind the plan.

However, advances in computing and software have lowered engineering barriers to entry into the auto sector, allowing Germany's Deutsche Post, for example, to develop its own electric delivery van, the Streetscooter, from scratch.

And to lessen the risk, Poland will license the manufacturing platform from a foreign partner, Piotr Zaremba, head of ElectroMobility Poland, told Reuters.

He declined to name the partner but said it was an automaker that has brought about 20 new vehicles to market in the past five years.

In the electric vehicle sector, Germany's Volkswagen has said it plans to license its manufacturing platform and has already struck a deal with Ford.

Volkswagen declined to comment for this story.

"We are not building the platform from scratch because it is too big a risk, from a technical and business perspective," Zaremba said. "So at every stage we try to reduce the risk by using tested solutions."

Starting at a small scale will allow Polish suppliers to grow alongside the project, building their competitive strength, which will also help them in foreign markets, he added.

NATIONAL CAR

A highly-skilled, but relatively low cost, workforce has helped to turn the Czech Republic, Slovakia and Hungary into investment and production hubs for global car manufacturers such as Volkswagen, Audi, Daimler and Kia , among others.

Poland has lagged behind, but believes the switch to electric mobility has created a new opportunity.

It has already used generous incentives to attract Asian battery firms such as LG Chem and Guotai Huarong to strengthen its position in the industry.

Under pressure to reduce emissions, the government said in 2016 it wanted to have one million electric vehicles on the road by 2025. At around 15,000 currently, that looks a long shot, but officials hope growing interest in electric cars will help fuel demand for the Izera models.

Climate Minister Michal Kurtyka predicted Poles would embrace a national car brand, and its success could raise the international profile of the country's auto parts industry.

"We have a chance to add an additional boost to this ecosystem which already exists," he told Reuters.

Even if project doesn't succeed, it could still provide a boost to the components sector.

"It is difficult to produce a car from scratch and equally difficult to do it in big volumes," said PwC CEE automotive industry leader Jens Horning. "But this will attract innovation and new technology in the supplier space."

($1 = 3.7968 zlotys) (Writing by Michael Kahn, Additional Reporting by Ed Taylor in Frankfurt, Editing by Mark Potter)


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
AUDI AG -0.61% 1630 End-of-day quote.0.00%
DAIMLER AG -2.78% 57.25 Delayed Quote.1.90%
DEUTSCHE POST AG -3.26% 41.56 Delayed Quote.6.07%
KIA MOTORS CORPORATION 6.26% 93300 End-of-day quote.49.52%
LG CHEM, LTD. 1.54% 990000 End-of-day quote.20.15%
LG CORP. 3.27% 110500 End-of-day quote.26.29%
VOLKSWAGEN AG -1.83% 160.02 Delayed Quote.6.94%
All news about KIA MOTORS CORPORATION
12:52aKIA MOTORS' : Fourth-Quarter Net Profit Nearly Tripled
DJ
01/26Luxury cars, EVs to fuel Hyundai's China, U.S. sales in 2021; Q4 profit jumps
RE
01/26Seoul Stocks Tumble on Foreign, Institutional Investors’ Profit-Taking,..
MT
01/25MARKET CHATTER : Sales of Hyundai, Kia Motors Decline Across Three Crucial Marke..
MT
01/25Seoul Stocks Close at New High after Crossing 3,200-Level on Hopes of US Fisc..
MT
01/24MARKET CHATTER : Hyundai, Kia Motors to Issue Green Bonds worth $273 Million Eac..
MT
01/22Seoul Stocks Decline on Valuation Pressure, Break Three-Day Gaining Spree
MT
01/21Seoul Indexes Gain on High Foreign Buying, Stimulus Optimism as US President ..
MT
01/20Wall Street Leans Forward Pre-Bell; Futures Green, Europe Up, Asia Higher
MT
01/20Seoul Indexes Gain as Auto and Technology Stocks Soar
MT
More news
Financials
Sales 2020 58 985 B 53,3 B 53,3 B
Net income 2020 1 477 B 1,33 B 1,33 B
Net cash 2020 2 536 B 2,29 B 2,29 B
P/E ratio 2020 24,6x
Yield 2020 1,20%
Capitalization 36 084 B 32 707 M 32 584 M
EV / Sales 2020 0,57x
EV / Sales 2021 0,48x
Nbr of Employees -
Free-Float 60,4%
Chart KIA MOTORS CORPORATION
Duration : Period :
Kia Motors Corporation Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends KIA MOTORS CORPORATION
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 28
Average target price 83 642,86 KRW
Last Close Price 90 000,00 KRW
Spread / Highest target 44,4%
Spread / Average Target -7,06%
Spread / Lowest Target -57,8%
EPS Revisions
Managers and Directors
NameTitle
Ho-Sung Song President, Co-Chief Executive Officer & Director
Jun-Young Choi Co-Chief Executive Officer, Director & VP
Woo-Jung Joo Director, Senior Managing Director & Head-Finance
Eui-Sun Chung Senior Vice Chairman
Sang-Koo Nam Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
KIA MOTORS CORPORATION49.52%32 598
TOYOTA MOTOR CORPORATION-3.52%202 277
VOLKSWAGEN AG6.94%104 262
DAIMLER AG1.90%76 627
GENERAL MOTORS COMPANY24.98%74 485
BMW AG-0.21%56 583