SEOUL (ANN/THE KOREA HERALD) – Kia, Hyundai Motor Group’s smaller affiliate, announced on Friday that it achieved a record-breaking operating profit of KRW2.9 trillion (USD2.1 billion) for the third quarter, despite facing headwinds in the global automotive sector.
This result represents a 0.6 per cent year-on-year growth, while sales revenue jumped 3.8 per cent to KRW26.5 trillion.
The carmaker’s sales volume, however, dipped 1.9 per cent to 763,639 units, impacted by a temporary production pause at two Gyeonggi Province plants and adjustments to its car lineup in key markets due to waning global demand.
Yet, Kia bolstered its profitability through enhanced product appeal, brand strength, and strategic focus on high-value vehicles, such as sport utility vehicles, coupled with price hikes in the lucrative North American market and reduced material costs.
Regionally, North American sales rose 2.5 per cent, while Indian sales saw a 12.3 per cent uptick, buoyed by the popularity of SUV models like the Sportage and Telluride.
In contrast, European sales dropped 13.4 per cent following subsidy cuts for electric vehicles, and a sluggish Chinese market led to a 10 per cent decline.
Kia’s eco-friendly vehicle sales saw a 3.6 per cent rise year-on-year, reaching 155,000 units in the third quarter. Strong demand for hybrid models, including the Carnival HEV and Sportage HEV, helped offset slower electric vehicle sales.
Looking ahead to the fourth quarter, Kia aims to increase sales of hybrid models in Korea and the United States, particularly the Carnival HEV and Sorento HEV.
In Europe, the carmaker plans to sell over 9,000 units of the new EV3 compact SUV and raise the share of eco-friendly vehicles to more than 40 per cent.
“We understand the market’s concerns over Kia’s low sales of EV models in the volume segment,” noted Joo Woo-jeong, Kia’s chief financial officer, during an afternoon conference call.
“With the introduction of the EV3 this year and the upcoming EV4 and EV5 next year, we are committed to achieving successful launches and driving significant results.”
Following its strong third-quarter performance, Kia has adjusted its annual guidance upwards.
The company now targets a 3.9–8.8 per cent increase in sales revenue, aiming for a range of 105 trillion to 110 trillion won, alongside a 7.5–10 per cent rise in operating profit, estimated between KRW12.8 trillion and KRW13.2 trillion.
Additionally, Kia has revised its operating profit margin goal from 11.9 percent to over 12 percent, reflecting its confidence in sustained growth.
