Kia will be launching a pilot project in Singapore, intended to allow it to break into the local last-mile delivery market.
Last month, it signed a memorandum of understanding with cold chain logistics startup S.lab Asia Inc. to evaluate the potential for a future Purpose Built Vehicle (PBV)-based business model.
The project intends to use a modified Niro EV, optimised for last-mile logistics service, in the city centre. Capitalising on the local rapidly growing e-commerce market, the strategic model will strengthen the PBV capabilities and service operations of both partners.
Kia states that the pilot will allow it to develop core PBV project experience.
These include the development of EV-based PBVs that are optimised for last-mile delivery, advancing the Car as a Service (CaaS) platform for fleets and leasing needs, establishing an EV-charging ecosystem, and creating an EV fleet management services structure.
Kia has selected Singapore as the optimal location for its next PBV project, taking advantage of the city-state’s world-class infrastructure, vibrant economy and rapidly advancing e-commerce.
Instrumental in Kia’s decision was Singapore’s plans to gradually phase out internal combustion engine transportation by 2040 via a forward-looking set of eco-friendly mobility policies, including increasing subsidies for EVs.
To successfully implement the project, Kia plans to establish a collaborative framework with key partners in this area. These include Hyundai Motor Group Innovation Centre in Singapore; SP Group, Singapore’s largest EV-charging company; and Kia’s authorised dealer, Cycle & Carriage.
Kia will also collaborate with S.lab Asia to further develop and optimise its PBV business model for the Korean market, and expand similar services to the country in the first half of this year.
Read more about the Kia Niro EV here!