Kia Motors, Strong Performance Alongside New Model Effect... "Promising 2020"

The appearance of the 3rd generation K5 (Photo by Asia Economy DB)

[Asia Economy Reporter Kum Boryeong] As Kia Motors' performance is expected to be favorable at the end of last year, analysis suggests that strong performance will continue this year as well.

According to Shinhan Financial Investment on the 11th, Kia Motors' Q4 sales and operating profit are estimated at 14.2 trillion KRW and 543.4 billion KRW, respectively. These figures represent increases of 5.1% and 42.3% compared to the previous year, and are expected to meet market expectations.

Wholesale sales in Q4 recorded 152,000 units in the United States (+6.9%), 145,000 units domestically (+5.8%), 122,000 units in Western Europe (+8.1%), 58,000 units in China (-54.2%), and 31,000 units in India (new). Researcher Jeong Yongjin of Shinhan Financial Investment explained, "With Telluride, Seltos, and K5 added, advanced countries show a solid performance. However, except for India, most emerging markets were sluggish due to a significant decline in market demand. Instead of year-end push sales, the focus was on inventory reduction."

Thanks to the smooth launch of the K5, the last new car of last year, the new car effect is expected to continue this year. Global sales of the Seltos and K5 will reflect their momentum, and the Sorento, Carnival, and Sportage, which account for 28.5% of global sales, will be released sequentially. Researcher Jeong said, "Even if volume growth is difficult due to weak demand, profitability improvement through promotional cost and cost reduction is expected. Operating profit this year is forecasted at 2.2 trillion KRW."

There is also an opinion that volume recovery is possible. Researcher Jang Moonsu of Hyundai Motor Securities emphasized, "We need to focus on the momentum concentrated this year. Starting with domestic sales through K5, Sorento, Carnival, and Sportage sales, global expansion will follow, and as we move into the second half of this year, volume recovery along with additional mix improvement is expected to increase sales."

This content was produced with the assistance of AI translation services.