6 days ago
KG Mobility bets on hybrids as core growth driver in long-term strategy
Korea's sport utility vehicle maker KG Mobility announced Tuesday that it is positioning hybrid electric vehicles as a key pillar of its future growth strategy, signaling enhanced participation in the segments gaining global traction as an alternative to battery EVs.
The announcement was made during the company's presentation of its mid- to long-term strategy at its headquarters in Pyeongtaek, Gyeonggi Province.
Presenting its hybrid concept as 'an electric vehicle without the need for charging,' the company said it aims to offer a quiet and smooth driving experience similar to that of EVs, while addressing concerns about charging infrastructure and safety.
'Unlike conventional hybrids, which add a supplementary motor to internal combustion engines to improve fuel efficiency, KG Mobility's hybrid vehicles are developed from EV platforms,' said Kwon Yong-il, research and development headquarters head at KG Mobility.
'Our goal is to retain the core benefits of EVs while alleviating concerns over fire risk and charging inconvenience.'
As part of its ongoing development of hybrid powertrains, the company, once known for its diesel models, said it is expanding beyond conventional hybrids.
'KGM is also co-developing new xEV systems with China's Chery Automobile, including extended-range electric vehicles (EREVs) and plug-in hybrids (PHEVs), which aim to deliver high efficiency at a price point comparable to that of conventional hybrids,' said Kwak Jeong-hyun, chief strategy officer at KG Mobility.
PHEVs provide a longer battery-powered driving range than conventional hybrids. EREVs take it further by using a gasoline engine only as a generator, supporting the battery to maximize efficiency and extend range.
To drive growth with its new powertrains, KG Mobility announced plans to accelerate the rollout of new eco-friendly SUV and pickup models, continuing its legacy of producing larger vehicles. The company aims to launch seven additional eco-friendly models by 2030.
As the first of these new launches, KG Mobility announced at the event that it will introduce the Actyon Hybrid SUV in the second half of 2025. The company explained that the gasoline-powered version released in 2024 underperformed in the market, partly due to the absence of a hybrid option.
The upcoming model is expected to be priced at around 37 million won ($27,200). It will be equipped with KG Mobility's efficiency-Dual motor Hybrid Transmission system, co-developed with Chinese electric vehicle giant BYD — the same powertrain used in the Torres Hybrid, the company said.
Amid concerns over the company's reliance on Chinese partners such as BYD and Chery Automobile for its electrification efforts, KG Mobility responded that it is also exploring partnerships with global companies for future model development.
During the event, the company pledged to revive its business with a comprehensive strategy that includes expanding its eco-friendly vehicle lineup and strengthening its global sales network. KG Mobility noted a shift in its sales structure, with exports now accounting for 70 percent of total sales, up from 40 percent in 2022.
'It has been two years and ten months (since KG Group acquired KG Mobility). I have diagnosed why the company has struggled, and now we are beginning treatment,' said Kwak Jae-sun, chairman of KG Group and KG Mobility.
'We will work together with every employee to rebuild this company. The difficult times (following its insolvency in 2009) cannot come again.'
