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Nobuaki Aoki (left), president of MK Holdings, and Sangdae Kim, executive vice president and head of Kia's PBV Business Division, pose for a commemorative photo at the signing ceremony for a memorandum of understanding (MOU). / Courtesy of Kia

Kia has made a new move in Japan's automotive market. Rather than entering the passenger car market dominated by Japanese automakers, the company has found an alternative route into the market by focusing on electric commercial vehicles. By partnering with a local passenger transport operator, Kia is seeking new business opportunities in Japan through the supply of purpose-built vehicles (PBVs) and the establishment of local sales and maintenance networks.

On Nov. 3, Kia announced that it had signed an MOU with Japanese passenger transport operator MK Holdings to supply PBVs and expand its local business. The two companies plan to initially supply 40 PV5 vehicles by the end of this year and increase the total number to 1,000 by 2030. The vehicles will be used for services including taxis, premium chauffeur services and airport pickups.

Operations have already begun in Japan. Four PV5 vehicles initially supplied by Kia have been operating as MK taxis in the Kyoto area since late last month. The vehicles have also been adapted to the Japanese market. They come standard with the CHAdeMO charging system used locally and have a turning radius of 5.5 meters while maintaining a wheelbase of 2,995 millimeters, reflecting Japan's narrow roads and streets.

The partnership builds on Kia's existing PBV business in Japan. Since signing a PBV sales agreement with Japanese trading company Sojitz in 2024, Kia has been establishing a local business foundation. It is also expanding its sales and service network through Kia PBV Japan, a wholly owned subsidiary established by Sojitz.

Following the launch of PV5 sales in May this year, Kia aims to secure 11 dealerships and 100 service centers across Japan by the end of the year. Under the latest agreement, Kia will be responsible for vehicle supply and technical and parts support, while Kia PBV Japan will oversee the establishment of local sales and service networks. The companies also plan to offer vehicle displays and test-drive programs using MK Holdings' existing facilities.

Kia's focus on Japan's commercial vehicle market reflects the potential for growing demand driven by the transition to electrification. The Japanese government has set a target of making electrified vehicles account for up to 30% of new commercial vehicle sales in the 8-ton-or-less category by 2030. Kia aims to capture early demand in the small and midsize electric commercial vehicle market in line with these policy changes.

"This MOU marks the beginning of a strategic partnership to jointly explore new applications for PBVs in the Japanese market, going beyond simply supplying vehicles," said Sangdae Kim, executive vice president and head of Kia's PBV Business Division.

"We will expand our partnership by combining the competitiveness of Kia's PBV products, MK Holdings' experience in the mobility business and Kia PBV Japan's local operational capabilities," he added.

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A Kia PV5 MK taxi operating in Kyoto, Japan. / Courtesy of Kia

                                                                                                            Nam Hyun-soo