Kia Ramps Up Investment by 30% Through 2029 Despite EV Target Cut and Share Dip

Kia Corp is stepping up its game over the next four years with a significant boost in investment, despite cutting its long-term electric vehicle sales goal. The South Korean automaker revealed a plan to increase its capital spending by 30%, raising the total to 41.4 trillion won (around $27.95 billion) between 2026 and 2029.

This cash infusion is aimed at electrification efforts, software development, and expanding into new business areas. Still, the company tempered optimism by scaling back its 2030 EV sales target by approximately 20%, bringing it down to 1 million units. This adjustment reflects softer demand and the elimination of U.S. EV subsidies last year.

The news initially caused some volatility: Kia's shares climbed as much as 2.5% before retreating sharply, eventually sliding 4.2%. Traders seem cautious about the increased spending not immediately translating into growth.

Kia also announced a delay in launching its software-defined vehicles (SDVs), with test models now expected by late 2027 instead of sooner. SDVs, which receive over-the-air upgrades much like Tesla's, were a key part of Hyundai Motor Group's innovation push, aiming for continual feature enhancements post-sale.

The automaker is targeting early 2029 to roll out cars featuring semi-automated driving tech for both highways and city driving. A fully autonomous robo-taxi model is slated for a 2030 debut, signaling Kia's ambitions in ride-sharing and mobility services.

Adding to its futuristic initiatives, Kia will join sibling company Hyundai Motor in deploying Boston Dynamics' Atlas humanoid robots at a factory in Georgia, U.S., set for 2029. Hyundai plans to start using the robots a year earlier, with aims to ramp up production to 30,000 units annually from their Savannah plant in the same timeframe.

Despite the boost in investment, the trimmed EV targets and delayed product launches suggest a more cautious stance amid market and regulatory headwinds. The moves underline the challenges automakers face in balancing aggressive R&D spending with realistic market prospects.

Whether Kia's larger investment outlay will pay off in gaining ground on rivals remains to be seen, especially given fluctuating demand and evolving tech timelines.